According to the National Account Statistics 2025, the textile sector contributes 2% to India's Gross Domestic Product and 11% to manufacturing Gross Value Added. India is also the world's sixth-largest exporter of textiles and apparel, accounting for a 4% share of global exports. The sector provides direct employment to more than 45 million people, including a significant number of women and rural workers.
Given its economic importance, export potential, and employment intensity, sustainability has become a critical focus area for India's textile industry. As international markets increasingly shift towards environmentally responsible production, Indian textile manufacturers are exploring opportunities to enhance competitiveness through resource-efficient manufacturing and reduced environmental impact.
Circular production is gaining momentum across the sector, with growing emphasis on recycling, waste reduction, and sustainable resource management. India's traditional textile craftsmanship and resource-conscious production practices are receiving wider global recognition as consumers and markets increasingly prefer products with lower environmental footprints.
Sustainability is influencing every stage of the textile production cycle, including raw material selection, manufacturing processes, quality standards, and market access. The approach is reshaping decision-making across the entire value chain while encouraging industries to adopt responsible and efficient production models.
India's efforts to promote organic and sustainable textile production are being supported through certification frameworks and various government initiatives, including the National Programme for Organic Production, Jute-ICARE, New Age Fibre Mission under MM-III, National Fibre Scheme, pilots for Sustainable Textile Production, PM Mega Integrated Textile Region and Apparel Parks, RAMP Programme, and National Technical Textiles Mission support for conversion of textile waste.
One significant pilot project, titled "Eliminating Hazardous Chemicals from the Textile Fashion Supply Chain in India," is covering eight clusters and four fashion houses. The project aims to mitigate 1,47,000 tonnes of carbon dioxide equivalent emissions and reduce the use of harmful chemicals by 10,530 tonnes.
As sustainability continues to influence global sourcing decisions, India's textile and apparel industry is positioned to strengthen its export competitiveness through circular production, responsible sourcing, and resource-efficient manufacturing. Continued efforts in these areas are expected to support long-term growth, resilience, and a stronger global presence for Indian textiles.
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