Seeds of Sustainability for India’s Textile Leadership

Syllabus: GS3/Economy

Context

• As one of the world’s largest textile manufacturing hubs, India faces challenges such as geopolitical tensions, fragmented supply chains, and price volatility, and demands sustainability for long-term global leadership.

About the India’s Textile Industry

• India has been a major textile producer since ancient times, with its cotton and silk fabrics highly sought after in global markets.
  • It flourished during the Mughal era, with intricate weaving techniques and vibrant dyes becoming hallmarks of Indian textiles.
• However, colonial rule disrupted traditional production, leading to a decline.
• Post-independence, India focused on reviving its textile sector, establishing mills and promoting indigenous production.

Current Data and Industry Insights

• It contributes 2.3% to our GDP, 13% to industrial production, and 12% to exports.
• The industry employs over 45 million people (second largest employment generator, after agriculture), making it one of the largest employment generators.
• India is the 6th largest exporter of Textiles & Apparel in the world, with $34.4 billion exports in FY 2023-24, and exports textiles to over 100 countries, with a 4.5% share in global trade.
• India’s textile sector has a potential of $350 billion market and adding 35 million new jobs by 2030.

Sustainability Concerns in India’s Textile Industry

• Textile Waste: It accounts for over 5% of global landfill waste, and excessive water usage remains a pressing issue.
  • Additionally, the use of harmful chemicals like nonylphenol ethoxylates (NPEs) in dyeing and processing poses health risks to workers.
• Carbon Footprint and Energy Use: The industry relies heavily on fossil fuels, contributing to greenhouse gas emissions.
  • While some companies are adopting solar rooftops and biomass energy, widespread adoption of clean energy solutions is still lacking.
• Waste Generation and Circularity Challenges: Textile waste accounts for a significant portion of global landfill waste.
  • While cotton recycling and polyester recycling are gaining traction, India still struggles with pre- and post-consumer waste management.
• Lack of Sustainable Raw Material Sourcing: Conventional cotton farming involves pesticides and excessive water use, harming soil health.

Other Concerns in Textile Industry

• High Raw Material Costs: Fluctuating cotton, jute, and synthetic fiber prices, and heavily dependency on cotton and man-made fibers (MMF)
• Outdated Manufacturing Infrastructure: Low adoption of automation and modern machinery.
• Competition from Global Markets: Strong competition from China, Vietnam and Bangladesh.
• Skilled Labor Shortage: Workforce needs upskilling to meet industry demands.
• Supply Chain Issues: Logistics inefficiencies and export-import bottlenecks.
• Limited Market Access: Trade barriers, high tariffs, and FTA limitations.

Strategic Opportunity For India

• Regenerative Farming: It addresses concerns related to raw material sourcing, climate change, and soil degradation.
  • The government is actively exploring it with over one million hectares of farmland being considered for pilot projects.
  • In Maharashtra, over 6,000 farmers have joined the Regenerative Cotton Program, leading to higher yields, improved climate resilience, and reduced reliance on chemical fertilizers.
• Product Traceability: It signifies authenticity, brand responsibility, and global market relevance. According to the 2023 Consumer Circularity Survey, 37% of consumers prioritize traceability in purchase decisions.
  • The Kasturi Cotton initiative enhances India’s textile branding globally.
  • The India-U.K. Free Trade Agreement (FTA) and EU regulations offer significant market potential by requiring transparent, traceable production systems.
  • India needs to harness AI-driven traceability technologies to stay ahead.
• Product Circularity: India generates 8.5% of global textile waste. Product Circularity can cut waste, extend product lifecycles, and reduce reliance on virgin materials. Circular design in products include:
  • Integrating sustainability across production stages: from fiber to packaging
  • Reengineering factory waste into new designs
  • Supporting plastic-free and biodegradable solution

Efforts Towards Sustainability

• 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.
• PM MITRA Parks Scheme: It aims to create world-class infrastructure for textile manufacturing.
  • These parks aim to promote sustainable production practices, including waste management and renewable energy adoption.
• Technology Upgradation Fund Scheme (TUFS): It supports textile manufacturers in upgrading their machinery to energy-efficient and environmentally friendly technologies.
  • It helps reduce carbon emissions and improve production efficiency.
• Kasturi Cotton Initiative: It ensures high-quality Indian cotton meets global environmental standards, to enhance traceability and sustainability.
  • It promotes ethical sourcing and transparency.
• National Technical Textiles Mission: It focuses on innovation in technical textiles, including eco-friendly materials and sustainable production techniques.
  • It aims to position India as a leader in sustainable textile solutions.

Way Forward

• To lead globally, the industry needs to move beyond greenwashing, embrace regenerative farming, build transparent supply chains, and prioritize product circularity.
• Strategic decisions taken today will determine whether India becomes a sustainable global textile leader tomorrow.

Source: TH