Seeds of Sustainability for India’s Textile Leadership

Brief 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.

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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