The Ecofab Revolution

The global demand for sustainable products is expected to soar, with consumers increasingly favouring brands that prioritise environmental and ethical practices says Dr S K Sundararaman.

The textile and clothing industry in India, a cornerstone of the nation’s economy has witnessed significant growth over the years.  It contributes approximately 2 per cent to the national GDP, employs over 105 million people directly and indirectly.  Despite its economic significance, the sector is at a crossroads, the industry faces challenges in achieving the Government’s ambitious target of $ 350 billion market size including $ 100 billion exports by 2030. Going forward there is a huge opportunity for India to increase its export share in the growing global trade. As the global demand for sustainable and eco-friendly products rises, India’s textile industry must adapt to meet these expectations while leveraging modern technology to stay competitive. The integration of ecology and technology, or “econology,” offers a transformative pathway to overcome the hurdles and position India as a global leader in the textile and clothing sector.

Leveraging modern technologies for a competitive edge

Modern technologies are critical to the emergence of econology in the textile industry. Advanced automation, Artificial Intelligence (AI) and the Internet of Things (IoT) can revolutionise production processes, enhance efficiency and reduce costs. For instance, AI-driven predictive analytics can optimise inventory management, while IoT-enabled sensors can monitor equipment to prevent downtime. Blockchain technology, meanwhile, offers transparency and traceability, allowing consumers to verify the ethical and sustainable origins of their products. by integrating these technologies, Indian manufacturers can improve quality, reduce lead time and enhance their competitive positioning in global markets.

Domestic and international machinery manufacturers have already started integrating their technology with AI to have better control over quality, better prediction of maintenance requirements, waste reduction, etc. AI has been used in textile industry in areas like designing and pattern making, computerised cutting, fabric inspection, broken yarn mending, material transportation, etc.

The importance of sustainability for global leadership

Sustainability is no longer optional for the Indian textile industry and it is characterised as an essential ingredient, not only for capturing new markets but also for retaining the current business. India is already making significant strides toward sustainability in the textile industry, thereby strengthening the ties with the international partners. Global consumers and retailers are increasingly scrutinising the environmental and social compliances of their supply chains.

India is an emerging global leader, more particularly, since the industry is prioritising sustainable practices across the value chain. This includes adopting renewable energy sources and reducing water consumption. Waste minimisation by adopting the principles of circular economy is gaining momentum across the value chain. Further, certification standards such as OEKO-TEX and GOTS (Global Organic Textile Standard) are being widely applied, thereby strengthening India’s credibility in international markets. These efforts position India not only as a responsible player but also as a global leader in sustainable textile production.

Textile wet processing sector is seen as a highly potential area in terms of implementing sustainable practices due to the usage of different chemicals & auxiliaries and high-water & energy usage.

Textile wet processing sector is seen as a highly potential area in terms of implementing sustainable practices due to the usage of different chemicals & auxiliaries and high-water & energy usage. The sector undertook several sustainable practices like adopting Zero Liquid Discharge system for effluent treatment, switching to water frugal dyeing, printing and finishing technology machinery and equipment, carrying out research and developments to use natural dyes derived from minerals, bio waste, etc., to minimise environmental impacts, etc. The Central Pollution Control Board has also formed a consultative group of experts and prepared a draft document on “Best Available Techniques Reference document for Textile Wet Processing Sector” to educate the highly unorganised sector to meet the requirements of international market.

Opportunities in 2025

The year 2025 is gearing to reveal a plethora of opportunities for India’s textile industry, the success ratio of converting the opportunities into confirmed business depends upon the preparedness of the players across the value chain embracing the principles of econology. The global demand for sustainable products is expected to soar, with consumers increasingly favouring brands that prioritise environmental and ethical practices. This trend offers Indian manufacturers an opportunity to capture new markets by adopting eco-friendly production methods and sustainable sourcing practices.

Additionally, advancements in textile technology, such as smart textiles and functional fabrics open up avenues for innovation. By investing in research and development, India can establish itself as a leader in cutting-edge textile solutions, catering to high-value markets like sportswear, medical textiles and technical textiles.

Considering the importance of cotton sector, its significant contribution to Nation’s economy and ensuring the livelihood of around 7 million marginalised cotton farmers, the Government has allocated Rs 5 billion for “Cotton Technology Mission” and Rs 1 billion for “National Mission on Hybrid Seeds” to facilitate significant improvements in productivity and sustainability of cotton farming, thereby promoting Extra-Long Staple cotton varieties. This will boost the domestic availability of cotton for the value-added textile sector apart from increasing the income level of cotton farmers.

To promote domestic production of technical textile products such as agro-textiles, medical textiles and geo textiles at competitive prices, the Government has added two more types of shuttle-less looms to the list of fully exempted textile machinery and also to encourage the consumption of fabrics manufactured in India, the Government has revised the BCD rate on knitted fabrics covered by nine tariff lines from “10 or 20 per cent” to “20 per cent or Rs 115 per kg, whichever is higher”.

The Government has also taken a conscious decision to make available the skilled labour force, through Skill India Programme with a budget allocation Rs 27 billion and allocating Rs 30 billion for upgrading the existing ITIs.

Challenges in achieving the total business size of $350 billion by 2030

Though Government has taken various initiatives to boost investment in textile and apparel sector in India, the sector has not exploited its full potential.  To overcome the obstacles faced by the industry, India’s textile and clothing sector needs to make several modifications and incorporate new practices to enhance its competitiveness. Steps to boost production include a greater emphasis on technological upgrades and expansion of capacity.

The following are the essential prerequisite strategies that are required to be addressed to achieve $100 bn export target by 2030:

• Removal of 11 per cent import duty on all varieties of cotton during off-season (April-October)
• Address Quality Control Order issues
• Specific HSN Code for Recycled Sustainable Textile Products
• Address the rising imports of cheaper fabrics and garments from China, Bangladesh, Sri Lanka, etc. by implementing yarn and fabric forward rules to protect the Indian manufacturers
• Clear pending Technology Upgradation Fund Scheme (TUFS) claims by allocating sufficient funds
• Fuel used for generation of electricity to be included within the purview of GST
• Allocating fund for encouraging indigenous textile machinery manufacturing
• Road map and allocation for One Nation One Grid Policy
• Stronger focus on the US market for apparels. The Indian home textile sector was the biggest gainer in volume terms in the US market. Efforts should be made to repeat the success of Indian apparel.
• Regional Foreign Trade Agreements to be reworked, in line with the current developments, an area which the Central Government is keenly focussed
• A level playing field with our top three competitors in the US market in terms of duty.
• Measures to encourage Product diversification and innovation in the MMF (man-made fibre) space and build scale to attract global buyers.
• To focus on technology adoption and digitisation with Industry 4.0 strategies, development of an agile mindset and focus on discipline in credit cycles

With consideration of the above said pleas, the industry will continue to fly into a rage, and the budgetary announcements are expected to give the industry an extra push!

Conclusion

The rise of econology in the textile and clothing industry represents a transformative shift that combines ecological responsibility with technological innovation. For India, this presents a unique opportunity to redefine its position in the global market. By addressing existing challenges, embracing sustainability, and leveraging modern technologies, the industry can achieve its ambitious targets and establish itself as a leader in the global textile landscape.

It is an undisputable fact that the industry has already ventured into “Econological” practices and the conversion of the innovative initiatives of the established manufacturers/Start-ups into commercial realisation on a larger scale is the need of the hour.

About the author:

Dr S K Sundararaman is a Chairman at The Southern India Mills’ Association (SIMA). He holds an MBBS Degree and Masters in Business Management from Cambridge University, UK.  Dr Sundararaman is a well-known personality in the field of technical textiles in India and also in the field of technical education.