Reshaping India’s Textile Ecosystem
Along with higher R&D investments, the sector has a renewed focus on smart textiles development, increase use of biodegradable materials, and AI-driven production optimisation, asserts Dr Siddhartha Rajagopal
India’s textile ecosystem is undergoing a paradigm shift, driven by policies that incentivise green-tech integration. From AI-powered factories to circular production models, the sector is balancing heritage craftsmanship with futuristic sustainability. While challenges persist, initiatives like MITRA and PLI signal India’s ambition to lead the global econology (Ecology +Technology) frontier, aiming for a $350 billion textile economy by 2030.
Green shoots in Indian textiles
The year gone by has left a glimmer of hope for the Indian textiles segment. Over the last few months, India’s textile exports have entered a positive territory despite global headwinds, economic downturns and supply chain disruptions; reflecting the resilience of industry to withstand tough times. India has also been doing well in few of the FTA markets such as South Korea, Japan, Australia, and Mauritius.
However, the full potential of export markets for Indian textiles has yet to be fully realised. Currently, the range of products exported is limited because the focus has been on exporting what is produced, rather than producing what is in demand globally.
To boost exports, TEXPROCIL is actively mapping markets and products and engaging in various promotional activities throughout the year as part of a focused marketing strategy. The approach includes aggressively promoting current products in existing markets, exploring new markets for these products, and targeting specific markets for new product offerings.
Textile 2030: Aim to attain $350 billion market size
The industry is hopeful to bounce back strongly towards achieving a $350 billion market size including $100 billion exports by 2030. However, the textile sector is faced with numerous challenges including environmental impacts, technological upgrades, skill development, and adapting to changing market conditions.
To address these issues, there is a pressing need for industry-wide transformation through the engagement of the government in creating a sustainable roadmap tailored to the Indian context. This involves harnessing global partnerships to bring about changes to how the industry functions.
To make significant contributions and target growth in exports, support is sought by the textile industry to make available the raw material at less than international prices, removal of import duty on cotton, credit support by extending the interest equalisation scheme, continuation of remission schemes such as RoDTEP, among others.
Opportunities in 2025
The textile industry is in for another exciting year, marked by the interplay of emerging technologies and advancements in sustainability. Like any new year, 2025 is expected to bring not only the changes to the trading order, but also a renewed focus on factors that will shape the textile industry.
The World Trade Organization (WTO) has projected that global trade volume could rise from 2.7 per cent to 3 per cent in 2025, contingent on the resolution of conflicts in West Asia. This potential growth underscores the importance of maintaining robust support for Indian exporters as they navigate a complex global landscape.
Investing in improving production infrastructure and employing modern technologies is crucial for enhancing India’s productivity, supporting economic growth, and ensuring environmental sustainability. It will also help India maintain its global textile leadership, create jobs, and contribute to the growth of exports.
Sustainability pursuit for global leadership
Science, and technology are increasingly being deployed to develop innovative practices vis-à-vis traditional methods to promote sustainable textiles production. In the coming years, sustainability and transparency will be key factors for consumers and consequently drive business growth.
By unlocking the potential of sustainable products, India can aim to create new income streams for the vulnerable working class, increase domestic value addition, improve trade balances through enhanced exports or import substitution, and reduce waste within the textile value chain. It is important the Indian textiles industry stays competitive and outlasts the growing demand from Global Brands for sustainable products.
Modern technologies to gain competitive edge
The T&C sector can be made future ready through pioneering “blockchain technology” to provide “real-time end-to-end” traceability of the origins of the product and entire value chain. Towards this end, the branding of Indian cotton is a step in the right direction. Under the guidance of the Ministry of Textiles, TEXPROCIL along with CCI and industry bodies is offering dual benefits of certification and traceability for cotton grown in Indian farms under the “Kasturi Cotton Bharat” programme.
Experience suggests that the newer developments in technology, use of advanced raw materials, domestic sales, green textiles and environmental sustainability, are adding lustre to the textile sector by identifying newer applications. Increased deployment of AI and IoT are providing data-driven insights to make better decisions. Investment in modern technologies can lead to innovation and knowledge transfer, improving the overall productivity and efficiency of the sector. Collaborations between research institutions, tech companies, and industry can help in the development of new technologies tailored to India’s work conditions.
Government support to boost the T&A sector
India’s share in world exports of apparel and textile stands at 3.9 per cent. Major apparel and textile export destinations for India are USA and EU and with around 47 per cent share in total textile and apparel exports. Due to the changing international trade order, wherein countries are trying to build a tariff wall with an eye to reduce their trade deficits, it may be difficult to suggest what will work for India and what will not.
Collaboration between industry stakeholders and the government extends to skill development programs designed to enhance both technical and managerial expertise within the workforce. Optimising supply chains is also a priority, with government initiatives focusing on reducing lead times and costs to improve India’s ability to meet global demand more effectively.
Nonetheless, the government should collaborate with the industry and work on two things in a focused manner. First, build really large-scale manufacturing capacities for products that are in high demand globally. Second, develop favourable access for India by signing Free Trade Agreements with developed countries so that we have better access to their markets and do not get pushed out due to preferential treatments enjoyed by our competitors.
Emerging opportunities
The world is undergoing a major shift in the sourcing patterns, driven by strategies such as China-plus-one that seek to diversify sourcing out of China. Further, the disruptions in competing countries like Bangladesh, have brought in both risks and opportunities to grow trade which the government needs to capitalise by extending all possible support to the textile industry.
At TEXPROCIL we have conducted a deep analysis of products and markets. There is a $58 billion market for several textile products incl. tents, sleeping bags, shopping bags, mattresses, bedding, window textiles, quilts etc. where India can capture a larger share in the world market. The Council is at the forefront to drive such initiatives and share such analysis and intelligence for the benefit of our member exporters.
Way forward
The policy ecosystem in India is prioritising Green manufacturing that mandates for reduced carbon footprints via renewable energy adoption (e.g., solar-powered factories). Along with higher R&D investments, the sector has a renewed focus on smart textiles development, increase use of biodegradable materials, and AI-driven production optimisation.
Incentives under schemes like the Production Linked Incentive (PLI) to boost technical textiles and attract FDI have further given the much needed push to the sector’s export competitiveness. Further initiatives toward skill development through programs targeting the upskilling of rural workforce are proving useful to bridge traditional craftsmanship with modern tech.
By merging ecological responsibility and technological innovation through strategic governance and industrial adaptation, India’s textile sector is fast aligning itself to become a “cornerstone” for economic and ecological advancements in the world.
About the author:
Dr Siddhartha Rajagopal, Executive Director – TEXPROCIL, has vast experience of over three decades in matters relating to international trade in textile and clothing. He has a PhD in Management Studies and has been with the textile industry for over 39 years. He has had the unique distinction of serving the entire gamut of the textile value chain from fibre to fashion. During the course of his career in the textile and clothing sector, Dr Rajagopal has been a member of several Indian delegations/negotiating groups sent by the Government of India to the USA, European Union, and the WTO to discuss various aspects of bilateral and multilateral trade in the textile and clothing sector. Dr Rajagopal has also been instrumental in conceiving export promotion schemes and market development strategies for the garment and textile sector and has organised India’s participation in several textile exhibitions/fairs and trade delegations, overseas and in India. He has had the opportunity to travel extensively the world over, promoting the exports of cotton textiles. He is currently engaged with the implementation of the “Kasturi Cotton India” Project in collaboration with the Cotton Corporation of India.
