The textile industry in India is one of the oldest and significant sectors of the economy. It is valued at over USD160 billion and contributes about 2.3 per cent to the country's GDP1. The industry employs over 45 million people directly and 100 million people indirectly, making it the second-largest employer in India after agriculture2. Additionally, India is the second-largest producer of textiles in the world, and the sector contributes 12 per cent to the country's export earnings2.
The Indian government is aiming to triple the size of Indian textile exports by 2030. This ambitious goal means more manufacturing and processing in India. However, we cannot pollute our way to growth. This manufacturing and processing needs to be sustainable—we need to grow based on green and inclusive growth. This involves using less energy, less water, reducing emissions, and minimising waste, while also providing people with decent working conditions and fair wages.
One of the fundamental strategies in achieving sustainability within the textile sector is the integration of eco-friendly technologies into production processes. By investing in innovation and adopting cutting-edge technologies that minimise environmental impact, textile manufacturers can enhance their operational efficiency while reducing their carbon footprint. From water-saving dyeing techniques to energy-efficient manufacturing processes, these technologies not only contribute to cost savings but also help in meeting sustainability goals and regulatory requirements.
Furthermore, integrating circular economy principles into the textile industry is instrumental in promoting sustainability and reducing waste. The concept of a circular economy emphasises the reuse, recycling, and repurposing of materials and products to minimise resource depletion and waste generation. India generates approximately 7.8 million tonnes of textile waste annually, accounting for 8.5 per cent of global textile waste3. By adopting circular economy practices such as textile recycling, upcycling, and waste reduction strategies, textile manufacturers can create a closed-loop system that extends the lifespan of materials, reduces environmental impact, and promotes resource efficiency.
While new technologies are fast emerging, building business strategies with circular economy principles is still slow. Companies navigating the financial landscape of sustainability in the textile industry find that its crucial to strike a delicate balance between economic growth and environmental responsibility.
The implementation of green financing models is crucial for supporting sustainability initiatives within the textile industry. Green financing involves directing capital towards environmentally friendly projects and businesses that aim to reduce their ecological footprint. Financial institutions play a pivotal role in providing access to green loans, sustainability-linked bonds, and other financial instruments that support the transition towards a more sustainable textile sector. By incentivising and rewarding environmentally responsible practices, green financing mechanisms help drive positive change and encourage investments in sustainable technologies and practices.
New sustainable manufacturing technologies and new processes also mean that people need to be upskilled and reskilled and supply chains need to be formalised. In all this, we can’t forget that a significant amount of fabrics in India are made of natural materials and can give us an edge in a world demanding sustainability. Jute, hemp, cotton, khadi, silk and our tradition of hand made textiles can grow exponentially with the sustainability push. Perhaps, India can give the world something that we excel at - sustainable, contemporary yet crafted in tradition.
Beautiful clothes for a beautiful planet.
India has immense design and textile knowledge. Can we connect it to the modern customer through AI? A new model that minimises waste, builds sustainability, forecasts trends with accuracy and makes use of our intrinsic strengths and incredible expertise.
It’s time to rethink the textile industry.
India, as the new fashion centre for sustainability focused customer.
