Experts stress that India’s textile sector must align sustainability strategies with export goals, as slowing growth and policy gaps heighten urgency

 India’s textile sector, aspiring to position itself as a global hub for sustainable production, urged faster adoption of circular economy practices and deeper public–private collaboration at the PHDCCI Sustainable Textile Summit.

According to provisional data from India’s Directorate General of Commercial Intelligence and Statistics (DGCIS), exports of textiles and apparel (including handicrafts) rose by about 5.2 per cent in FY 2024-25 over the previous year. However, other reports point to challenges: Readymade garment exporters, particularly those heavily dependent on US markets, are expected to see a near-halving of revenue growth due to new tariff measures.

Industry leaders emphasised that sustainability must no longer be an optional layer but core to India’s textile roadmap. The government’s existing policy tools, including Production Linked Incentive (PLI) schemes, integrated textile parks, and recycling mandates, are being aligned with environmental responsibility, circular production, and cleaner supply chain standards.

Khadi and Village Industries Commission (KVIC) leaders argued that traditional practices like Khadi offer a blueprint for sustainable, decentralised production with low environmental impact and strong social inclusion. International development groups, such as UNIDO, presented case studies of projects in Surat and Varanasi clusters that aim to eliminate hazardous chemicals and promote renewable energy among MSMEs.

Technology providers also played a role: one speaker from Oerlikon Textile India showcased how recycling-friendly machinery and smart factory integration could lift energy efficiency and reduce waste. Another, from RSWM Limited, showed how PET bottle recycling, renewable energy use and water conservation are becoming part of business strategies.

Policy, Investment And Road Ahead
India’s textile and apparel sector is projected to grow at about a 10 per cent compound annual growth rate (CAGR) to reach USD 350 billion by 2030, with exports expected to hit about USD 100 billion. Cotton textiles, man-made fibres, and technical textiles will play critical roles in that expansion, according to the India Brand Equity Foundation

But risks are mounting. According to Crisil, home textile exporters may suffer a 5-10 per cent revenue drop in the current fiscal year because of new US tariffs, weakening profitability in that segment. Supply chain pressures, rising energy and compliance costs, and the need for sustainable inputs (e.g. fibres, dyes, water) add to the urgency articulated at the summit.

Experts urged more incentives for recycling and sustainability, better support for MSMEs in adopting clean technologies, and enhanced collaboration with government and global institutions. A mission for cotton productivity (including quality and sustainability), and schemes for technical textiles, man-made fibre (MMF) apparel under PLI, are key levers.

If India is to meet its export target of Rs 9 lakh crore by 2030 for textiles and apparel, these sustainability innovations must be scaled rapidly. The industry acknowledges that sustainability initiatives, while initially increasing costs, are essential to retain competitiveness in export markets increasingly sensitive to environmental standards.