Context
Being one of the world’s largest textile manufacturing hubs, India is a victim of geopolitical conflicts, fragmented or distorted supply chains, and price variability, and it asks for sustainability for long-term global leadership. Here, we will discuss how India’s Textile industry is regaining leadership.
About India’s Textile Industry (Historical Background)
India has always been a renowned textile producer since ancient times, with its cotton and silk fabrics highly demanded in global markets. It excelled during the Mughal era, with intricate weaving techniques and vibrant dyes becoming hallmarks of Indian textiles.
But colonial rule destroyed traditional production, resulting in a decline. After independence, India paid heed to rejuvenating its textile sector, establishing as well as fostering indigenous production.
Current Statistics
(a) It contributes 2.3% to our GDP, 13% to industrial production, and 12% to exports.
(b) The industry employs more than 46 million people (second largest after agriculture in terms of giving employment), making it one of the largest employment generators.
(c) India is the 6th largest exporter of Textiles & Apparel in the world, with $34.4 billion in exports in FY 2023-24, and exports textiles to over 100 countries, with a 4.5% share in global trade.
(d) India’s textile sector has a potential market of $350 billion and is expected to add 35 million new jobs by 2030.
Sustainability Concerns
(i) Textile Waste: It contributes five per cent to global landfill waste, and a huge amount of water usage remains a concerning issue. Also, the use of lethal chemicals like nonylphenol ethoxylates (NPEs) in dyeing and processing creates health issues for workers.
(ii) Carbon Footprint and Energy Use: The industry depends heavily on fossil fuels, consequently contributing to greenhouse gas emissions. Even after companies are adopting solar rooftops and biomass energy, the required adoption of clean energy solutions is still far in the future.
(iii) Waste Generation and Circularity Challenges: Textile waste contributes largely to global landfill waste. Though cotton and polyester recycling are getting traction, India still grapples with consumer waste management (before and after production).
(iv) Lack of Sustainable Raw Material Sourcing: Traditional cotton farming involves pesticides and a huge amount of water, us inflicting soil health.
Other Concerns
(a) High Raw Material Costs: Volatile cotton, jute, and synthetic fibre prices, and heavy reliance on cotton and man-made fibres (MMF).
(b) Outdated Manufacturing Infrastructure: Inadequate utilisation of automation and modern machinery.
(c) Competition from Global Markets: Tough competitors like China, Vietnam and Bangladesh.
(d) Skilled Labour Shortage: The Workforce requires upskilling to fulfil industry demands.
(e) Supply Chain Issues: Inefficient logistics and export-import issues.
(f) Limited Market Access: Trade barriers, high tariffs, and FTA limitations.
Strategic Opportunity For India’s Textile
(i) Regenerative Farming: It addresses concerns associated with the source of raw material, climate change aftereffects, and poor soil health.
(a) The dispensation is vigorously exploring it with over one million hectares of farmland taken for pilot projects.
(b) In Maharashtra, more than 6k farmers acknowledged and joined the Regenerative Cotton Program, resulting in higher yields, ameliorated climate resilience, and reduced dependency on chemical fertilisers.
(ii) Product Traceability: It ensures authenticity, brand responsibility and accountability, and global market relevance. As per the 2023 Consumer Circularity Survey, close to 36-37% of consumers gave importance to traceability while purchasing.
(a) The Kasturi Cotton initiative promotes India’s textile branding internationally.
(b) The India-U.K. Free Trade Agreement (FTA) and EU regulations offer huge market potential by just demanding transparent, traceable production systems.
(c) India has to leverage AI-driven traceability technologies to keep itself at the forefront..
(iii) Product Circularity: India generates around 8.5 – 9% of global textile waste. Product Circularity can reduce waste, increase product lifecycles, and decrease dependence on virgin materials. Circular design in products includes:
(a) Integrating sustainability across production stages: from fibre to packaging
(b) Reengineering factory waste into new designs
(c) Supporting plastic-free and biodegradable solutions.
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Efforts Towards Sustainability
(i) Environmental, Social, and Governance (ESG) Task Force: It was established by the Ministry of Textiles to drive sustainability discussions and implement initiatives. It focuses on integrating environmental and social governance principles into textile production.
(ii) PM MITRA Parks Scheme: Its goal is to create world-class infrastructure for textile manufacturing. This park’s goal is to foster sustainable production practices, including waste management and renewable energy adoption.
(iii) Technology Upgradation Fund Scheme (TUFS): It gives patronage to textile manufacturers in machine upgradation, enabling them to use energy-efficient and eco-friendly technologies. It helps mitigate carbon emissions and ameliorate production efficiency.
(iv) Kasturi Cotton Initiative: It aims for the production of high-quality Indian cotton to come at par with global environmental standards, to increase traceability and sustainability. It promotes ethical sourcing and transparency.
(v) National Technical Textiles Mission: It gives importance to innovation in the technical segment, covering eco-friendly products and sustainable production techniques.
Conclusion
To lead in the international market, the industry has to go beyond greenwashing, recognise and leverage regenerative farming, build transparent supply chains, and give preference to product circularity. Prudent and calculated decisions of today will determine if India is going to become tomorrow’s sustainable global textile leader.