Sustainability and Circular Production Are Reshaping India?s Textile and Apparel Sector

Driven by policy support, growing export demand and resource-efficient production, India?s textile and apparel sector is strengthening its focus on organic fibres, circularity, cleaner technologies and responsible manufacturing.

India?s textile and apparel industry has long been central to the country?s manufacturing strength. It makes a significant contribution to India?s economy, industrial output, and exports, while holding a strong position in global textile trade. With changing global demand patterns, sustainability is becoming a major growth lever for the sector. Policy action is supporting organic fibres, safer chemicals, circular production, waste recovery, eco-labelling, and traceability. Cleaner technologies, recycling, responsible sourcing and waste reduction can help Indian textiles remain competitive in international markets.

As per the National Account Statistics 2025, the sector accounts for 2% of India?s GDP and 11% of manufacturing GVA. India is also the world?s sixth-largest exporter of textiles and apparel, holding 4% share in global exports. The sector also provides direct employment to more than 45 million people, including many women and rural workers. Given its economic scale, export linkages, and employment intensity, sustainability has become increasingly important for the sector. As global markets are shifting towards environmentally responsible production, India?s textile industry has an opportunity to strengthen its competitiveness. Within this scope, circular production is gaining momentum across the sector. India's rich heritage of textile craftsmanship and resource-conscious production is receiving wider recognition, as global markets increasingly value products with a lower environmental footprint.

Sustainability in textiles can further be understood through different stages of the production cycle. It is now influencing choices related to raw materials, manufacturing processes, quality standards and market access across the value chain.

India?s push for organic production is being strengthened through certification frameworks and cultivation support programmes such as National Programme for Organic Production (NPOP), Jute-ICARE, New Age Fibre Mission (MM-III), National Fibre Scheme, Pilots for Sustainable Textile Production, PM Mega Integrated Textile Region and Apparel (MITRA) Parks, RAMP Programme and NTTM Support for Conversion of Textile Waste.

One among that pilot project is Eliminating Hazardous Chemicals from the Textile Fashion Supply Chain in India covering eight clusters and four fashion houses. The project is designed to mitigate 1,47,000 tCO2eq and also reduce harmful chemicals use by 10,530 tonnes.

Outlook

As sustainability increasingly shapes global sourcing decisions, India?s textile and apparel sector is well positioned to strengthen its export competitiveness. Continued progress in circular production, responsible sourcing and resource-efficient manufacturing is expected to support long-term growth and resilience.

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