Crafting a Smart Future
The Indian textile and apparel (T&A) industry stands as one of the largest contributors to the country’s economy. Besides playing a pivotal role in employment generation, it contributes significantly to export revenue, saysKushal Patel.
The textile sector, which accounts for around 2.3 per cent of the national GDP and 12 per cent of total exports, has emerged as a vital segment of Indian industry, providing direct employment to over 45 million people. Additionally, it supports another 60 million through allied industries, according to industry reports. India’s rich textile heritage and diverse manufacturing capabilities have positioned it as a key player in the global market.
The industry’s strength lies in its complete value chain—from fibre production to finished apparel—supported by abundant availability of raw materials, including cotton, jute, and silk. Despite its strong foundation, the sector faces mounting challenges due to global competition, rising production costs, and increasing demand for sustainable practices.
India has set an ambitious target of reaching $350 billion in textile exports by 2030, but achieving this goal presents significant challenges. The global textile market has become highly competitive, with countries like Vietnam and Bangladesh offering lower production costs and faster turnaround times. High raw material prices, supply chain disruptions, and fluctuating global demand have further complicated growth prospects.
Many Indian textile manufacturers still rely on traditional production methods, leading to inefficiencies and inconsistent product quality. Compliance with stringent environmental and labour standards in key export markets also remains a significant hurdle. Moreover, the domestic market is highly fragmented, with a large portion of production concentrated in small and medium enterprises (SMEs), which often lack the financial and technological resources to compete on a global scale.
Global shifts in trade dynamics are also influencing the Indian textile industry’s trajectory. Trade tensions between the United States and China, along with the push for diversified supply chains, have created new opportunities for India to strengthen its position as a reliable textile supplier. However, India’s ability to leverage these opportunities will depend on its capacity to modernise infrastructure, improve product quality, and align production with sustainable practices.
Despite these challenges, the Indian textile industry stands at the cusp of a major transformation driven by the intersection of ecology and technology—what is now being termed “Econology.” As global consumers become more environmentally conscious, there is a growing demand for sustainable and ethically produced textiles. India, with its strong base in organic cotton production and natural fibres, is well-positioned to capitalise on this shift. The increasing demand for eco-friendly fabrics, plant-based dyes, and circular production models presents a significant opportunity for Indian manufacturers to carve out a niche in the premium segment. Additionally, India’s long-standing expertise in handloom and artisanal textiles gives it an advantage in catering to the luxury and high-fashion segments, where authenticity and heritage are valued alongside sustainability.
Sustainability has become a critical factor for India to establish itself as a global leader in the textile sector. The shift towards eco-friendly materials such as organic cotton, hemp, and recycled fibres can reduce environmental impact and enhance India’s competitiveness in environmentally conscious markets. Sustainable manufacturing processes, including waterless dyeing, energy-efficient machinery, and waste recycling, can lower production costs while improving compliance with international standards.
Circular economy models, where waste materials are repurposed into new textiles, offer additional opportunities to minimise environmental impact and create a new revenue stream. Social compliance is equally important; ensuring fair wages, safe working conditions, and equitable labor practices will enhance India’s reputation as a responsible manufacturing hub.
Water consumption remains a significant challenge for the Indian textile industry, particularly in cotton production and dyeing processes. Conventional dyeing techniques are water-intensive and contribute to water pollution. Implementing zero-liquid discharge (ZLD) systems, where wastewater is treated and reused, can significantly reduce the industry’s environmental footprint. Solar energy and biomass-based heating systems can also reduce the industry’s reliance on fossil fuels, lowering greenhouse gas emissions and production costs. Manufacturers who adopt these sustainable practices will not only meet regulatory standards but also attract premium pricing from eco-conscious buyers.
Modern technology will play a key role in helping India gain a competitive edge in the global textile market. The adoption of automation, artificial intelligence (AI), and machine learning in production processes can increase efficiency and product consistency. AI-driven quality control systems can minimise defects and reduce wastage, while automated spinning and weaving machines can increase production capacity without compromising quality.
Blockchain technology offers significant potential for improving supply chain transparency and traceability, enabling manufacturers to provide verifiable data on the origin and sustainability of their products. Digital printing and 3D knitting technologies are transforming design and production, allowing for greater customisation and faster production cycles with minimal waste.
Smart textiles represent another growth avenue for Indian manufacturers. Fabrics embedded with sensors, conductive fibres, and nanotechnology can be used in healthcare, sports, and military applications. For example, fabrics with moisture-wicking, temperature-regulating, and UV-protective properties are gaining popularity in sportswear and active wear. Similarly, antibacterial and antiviral fabrics have seen increased demand since the COVID-19 pandemic, opening new market segments for Indian textile manufacturers.
The Indian government’s support will be crucial in driving the textile sector’s transition toward sustainability and technological advancement. Initiatives such as the Production Linked Incentive (PLI) scheme and the MITRA (Mega Integrated Textile Region and Apparel) parks aim to strengthen domestic infrastructure and improve the industry’s competitiveness. Expanding the scope of the PLI scheme to cover more textile categories and offering low-interest loans for technology upgrades will incentivise manufacturers to adopt sustainable practices and invest in modern machinery. Trade agreements with key markets such as the European Union, the United Kingdom, and Australia will open new export opportunities and enhance India’s market access. Streamlining export procedures, improving port infrastructure, and reducing logistical bottlenecks will further strengthen India’s position as a reliable supplier in the global market.
Skilling and training programs are equally important. The Indian textile industry employs a large workforce, but there is a growing need for skilled professionals in textile technology, design, and sustainable production. Government-supported vocational training programs and partnerships with leading textile institutes can help bridge this skill gap. Moreover, increasing female participation in the workforce and promoting gender equality in the textile sector can drive productivity and social inclusion.
Several emerging segments within the textile industry present high-growth potential. The demand for technical textiles—used in healthcare, defence, and infrastructure—is rising rapidly. India’s capacity to produce high-performance fabrics positions it well to tap into this growing market. Sustainable fashion, driven by eco-friendly and recycled materials, is also gaining traction in both domestic and international markets. Athleisure and performance wear, which require moisture-wicking, stretchable, and lightweight fabrics, are becoming increasingly popular.
Additionally, smart fabrics, embedded with sensors and responsive properties, offer new applications in sportswear, healthcare, and military use. The home textile segment, including premium bedding, curtains, and upholstery, is another area of significant growth, driven by increasing urbanisation and rising consumer spending on home improvement.
The rise of “Econology” marks a defining moment for the Indian textile industry. By integrating sustainable practices with advanced technologies, India can position itself as a global leader in textile production and exports. The path forward requires a collaborative effort between industry stakeholders and the government to create a more resilient, competitive, and environmentally responsible textile sector.
India’s rich textile heritage, combined with its ability to adapt to changing market dynamics, positions it well to meet the challenges and seize the opportunities of the evolving global textile landscape. The integration of sustainable practices with technological advancements will enable India not only to meet its ambitious export targets but also to lead the global textile industry towards a more sustainable and innovative future.
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