The pair emerged winners among 10 Indian designers including Gaurav Gupta, Samant Chauhan and Zubair Kirmani who vied for the regional award.
There are five regional competitions - USA, Europe, China, Australia and India. The winners of each regional competition will travel to London Fashion Week in February 2013 where they will present an entire capsule collection of Australian Merino wool and an international winner will be selected.
"We look forward to supporting and working with Pankaj and Nidhi in the lead up to the finals in February where they have the chance to be awarded with the once in a lifetime opportunities that are on offer for the winner of the International Woolmark Prize," Stuart McCullough, CEO of Australian Wool Innovation, owners of The Woolmark Company.
The Woolmark Company relaunched the International Woolmark Prize this year to help promote outstanding design talent from around the world, and through its design innovations inspire and educate consumers on the natural beauty of Merino wool.
The international winner will also have his/her designs stocked by leading global retailers including Bergdorf Goodman in the USA, Harvey Nichols in the UK, 10 Corso Como in Italy, Joyce in China, Eickoff in Germany and David Jones in Australia.