
From Tradition to Tech
As customised manufacturing gains momentum and the demand for technical textiles rises, India’s textile industry stands at the cusp of a new era, says Avinash Mane.
Building on its rich heritage and expert craftsmanship, India’s textile industry is undergoing a profound transformation. By embracing “Econology”—the intersection of ecological practices and cutting-edge technology—the industry is poised to achieve its $350 billion goal by 2025, while pioneering a sustainable future.
Current scenario of the Indian textile industry
With over 45 million direct jobs and a 2 per cent GDP contribution, the Indian textile sector is one of the biggest in the world. The industry is distinguished by its diversity, which includes both modern technology textiles and traditional handlooms. With 12 per cent of the nation’s export revenue coming from it, it is also a major contributor to exports.
India is the world’s second-largest producer of textiles, accounting for about 5 per cent of worldwide textile exports. As a result of the post-pandemic rebound and rising demand for sustainable products in Western markets, India’s textile exports increased by 5.4 per cent in the first quarter of fiscal 2025, hitting $5.86 billion in April-May 2024, according to recent sources.
Challenges and opportunities in the sector
While India aims for a $350 billion textile sector by 2025, challenges remain: environmental impact, aging infrastructure, and a need for workforce upskilling. Addressing these through innovation, collaboration, and streamlined regulations will be key to competing with global players and realising the industry’s full potential.
Despite the challenges, the Indian textile and apparel sector has several promising opportunities in 2025. The technical textiles segment, with applications spanning healthcare, automotive, and infrastructure, is projected to grow at a robust CAGR of 20 per cent. Digital transformation through smart factories, automation, and AI-powered solutions can revolutionise productivity and reduce costs. On the global front, as markets diversify their sourcing, India has the potential to capture a significant share in the EU and US markets. Domestically, the growing middle class and rising purchasing power are driving demand for sustainable and branded apparel. Furthermore, on-going Free Trade Agreement (FTA) discussions, particularly with the UK, present a strategic opportunity to expand India’s textile export footprint.
India’s aspiration to become a global textile leader hinges on its commitment to sustainability. This requires a comprehensive approach, integrating eco-friendly practices at every stage, from sourcing raw materials to delivering finished products. The payoff is multifaceted: a smaller environmental footprint, a stronger brand reputation, better compliance with international regulations, and access to premium global markets hungry for ethically produced goods. Crucial steps include implementing circular economy models, where waste is minimised through recycling and upcycling, and adopting effective water management techniques, such as advanced dyeing and wastewater treatment, to address the industry’s significant water footprint.
Transitioning to green energy by integrating renewable sources such as solar, wind, and biomass into manufacturing processes is another critical step, as it not only lowers carbon emissions but also reduces long-term energy costs. Additionally, fostering ethical practices is essential—ensuring fair wages, safe working conditions, and adherence to global labour standards will not only attract socially conscious consumers but also strengthen partnerships with international buyers.
By prioritising these sustainability measures, India can position itself as a frontrunner in the global textile industry. This approach will align the sector with evolving consumer preferences and regulatory landscapes while establishing India as a beacon of innovation and responsibility in the world of sustainable textiles.
The textile industry is seizing opportunities presented by technological advancements to drive both competitiveness and sustainability. The Internet of Things (IoT) and artificial intelligence (AI) are optimising supply chains, reducing waste, and enabling real-time monitoring. 3D printing is transforming apparel manufacturing with on-demand, resource-efficient production. Blockchain technology ensures traceability and transparency, meeting consumer demand for ethical sourcing. Furthermore, advances in materials science are leading to the development of biodegradable and renewable fibres like organic cotton, hemp, and bamboo, solidifying the industry’s commitment to a sustainable future.
Accelerating growth and sustainability in the textile sector requires proactive government involvement. This includes incentivising the adoption of green technologies and processes through tax benefits and subsidies, developing modern textile parks with state-of-the-art facilities and efficient logistics, and investing in research and development to foster innovation in sustainable materials and production. Simplifying compliance norms and easing regulations can further stimulate investment and innovation. Finally, targeted skill development programs are essential to equip the workforce with the expertise needed for the evolving demands of digital technologies and sustainable textile production.
The Indian textile sector’s future lies in its ability to embrace emerging trends and adapt to shifting market demands. Smart textiles, for instance, are gaining traction, integrating electronic components into fabrics for applications in healthcare, fitness, and beyond. Sustainable fashion is another growing area, driven by the increasing preference of eco-conscious consumers for garments crafted from organic and recycled materials.
As customised manufacturing gains momentum and the demand for technical textiles rises, India’s textile industry stands at the cusp of a new era. The rise of econology—the integration of ecology and technology—presents a pathway to achieving the $350 billion valuation by 2030. By embracing innovative technologies, fostering collaboration between industry players, government bodies, and consumers, and prioritising sustainability, India can not only achieve its economic ambitions but also establish itself as a global leader in responsible textile production, creating a future where economic prosperity and ecological balance go hand in hand.
References:
- Statista: Indian Textile Industry Overview
- Apparel Views: India’s Textile Export Targets
- Outlook Business: Sustainability in Indian Textiles
- Indian Textile Journal: Road Ahead to 2025
- Indian Textile Journal: Key Trends in 2025
- Fibre2Fashion: ESG in Indian Textiles
- Textile Sphere: India’s New Textile Policy
About the author:

Avinash Mane is the Senior Commercial Director of Textile Business at Lenzing Fibres, AMEA & NEA. Presently responsible for the complete business of India, Pakistan, Sri Lanka, Bangladesh, Thailand, Mauritius , Nepal , Korea , Hong Kong & Taiwan markets for Textile & Non-woven business. Apart from regular sales activities, it involves interactions with all key stakeholders in entire supply chain from fibre to finished garments (spinners, weavers/ knitters, dyeing/ finishing, garmenting), thus providing end to end solutions to the industry. Coordination for providing sourcing solutions for Global brands in different markets of AMEA & NEA. Responsible for business development in various segments (Denim, home, fashion knit, cotton enhance, fashion woven & traditional wear & fire resistant). Driving Marketing & Cobranding initiatives for India and other AMEA & NEA countries.