India’s textile sector is one of its oldest industries, contributing to 13% of overall industrial production, 12% of total exports and 2.3% of the nation’s GDP while being its second-largest employment creator, employing around 45 million people. According to Texprocil, the domestic textile segment is anticipated to touch $350 billion by 2030, rising from $197 billion in 2023, with a CAGR of 10.1%. As the world’s third-largest textiles exporter, the country exported $35.9 billion of textile products in FY2024, with the number slated to reach $100 billion by FY2030.
Addressing Environmental Concerns
However, the sector’s strong growth has triggered several environmental challenges. This includes the release of heavy waste and toxic effluents into the surroundings alongside huge consumption of water and other resources. Wastewater discharge, increasing air and noise pollution, plus workplace safety issues, are also major concerns.
To address these problems, the industry has been implementing several techniques, like the adoption of renewable energy and circular fashion, to make its operations more efficient and sustainable. The shift towards sustainable practices has been necessitated by government regulations and the rising preference of consumers for eco-friendly products.
As a result, manufacturers are adopting recycling and water conservation methods while shifting towards the production of bio-friendly textiles. Measures like plastic recycling, regenerative organic farming and innovative manufacturing practices are also being used. For instance, waterless dyeing is saving millions of litres of water used in traditional dyeing processes. Consequently, water consumption, energy usage and chemical waste are reduced drastically, limiting environmental damage.
Other sustainable practices include the integration of recycling and upcycling in manufacturing practices. Thereby, pre- or post-consumer textile waste is transformed into new garments, contributing to the circular economy. Since high energy usage and the consumption of fossil fuels add to their environmental footprint, many textile manufacturers use solar and wind power to promote energy efficiency and reduce emissions. Similarly, to restrict the excessive generation of wastewater, textile firms are reusing this water in their manufacturing processes. Alongside water recycling systems, this helps in curbing water usage while promoting more efficient water management.
Besides sustainable practices, textile manufacturers have introduced various innovations to boost circular manufacturing. Here, biodegradable textiles have played a huge role in waste management. For example, regenerated cellulose fibres made from renewable materials such as wood pulp offer a high-quality, eco-friendly option to conventional products like cotton or synthetic yarns.
Cotton has multiple challenges vis-à-vis land use, water consumption, energy use, pesticide reliance, and its overall impact on the climate. In contrast, cellulose fibres come from renewable natural sources, are biodegradable and require significantly less energy and water during production. Moreover, considering their exact feel, comfort and performance as cotton, they provide an excellent eco-friendly alternative.
Transparency, Green Sourcing and Institutional Measures
Another major area with a heavy carbon trail is the textile supply chain. Therefore, textile manufacturers have improved traceability and transparency in supply chains by using blockchain and other digital tools. Blockchain systems allow customers to track the entire product journey, right from the raw materials stage to finished garments. This helps consumers verify that ethical and sustainable practices were used, ensuring the products they buy leave a minimal environmental impact.
The significance of green sourcing in curbing the environmental impact of textiles and meeting the expectations of consumers cannot be overemphasised. Green sourcing denotes the practice of procuring materials cost-efficiently, so it majorly mitigates any environmental harm across the supply chain while offering cost benefits. The textile segment can lower its dependence on hazardous chemicals and support responsible farming by sourcing organic cotton, recycled polyester or other sustainable materials. Since organic cotton needs no fertilisers or toxic pesticides, it safeguards the well-being of both farmers and the environment. In the same way, by reducing virgin polyester production demand, recycled polyester saves energy and curbs waste.
The recycling and reuse of materials at diverse manufacturing stages boost closed-loop production systems. By reducing waste generation, this approach advances the circular economy model, wherein waste is reduced and resources are conserved.
Finally, one must also recall measures taken by the government to promote sustainable manufacturing. The government’s MITRA (Mega Investment Textiles Parks) scheme is aimed at facilitating accessible and affordable sustainable manufacturing practices. Further, the Centre has implemented a credit-linked Capital Investment Subsidy scheme to enhance the ease of doing business. Under this scheme, $75.74 million (INR 621.41 crore) in subsidies have been disbursed. Such initiatives are helping the textile industry shift steadily towards the circular economy model, benefitting all stakeholders while meeting consumer expectations.







