What Does the Future Hold for India's Textiles and Fashion Industry?

The Challenge: India's Economic Empowerment Gap and Unemployment

According to McKinsey analysis, more than half the population of G-20 countries—about 2.6 billion people—live below the line of economic empowerment. This means they don’t have enough money to meet the full range of essential needs and begin attaining economic security. Seventy-seven percent of India’s population—over a billion people—live below this economic-empowerment line, the largest empowerment gap of any G-20 nation.

India has the largest young workforce in the world, but with this strength comes the challenge of unemployment. Traditionally, India has relied on government initiatives and schemes to create employment. However, no government can create such a high number of jobs alone; it can only create an ecosystem where jobs are generated and businesses are created.

India's Strengths: The Foundation for a Bright Future

This may very well be India's century. As a country of superlatives, India is home to the world’s fifth-largest economy and the largest population, with over 1.4 billion people. Notably, this population is incredibly young, with a median age of 27.6 years, making it the largest workforce available anywhere in the world.

In 2024, India held the world’s largest democratic elections, with 642 million people casting their ballots. This exercise of democracy further cements India’s position as a global powerhouse. making India one of the most safe and stable to do business Economically and Politically.

India as an Economic Powerhouse

India has ambitious goals:

• Achieving 8 percent GDP growth each year in the next decade and growing India’s GDP to $19 trillion by 2047.
• Creating 90 million jobs by 2030 and 600 million jobs by 2047.
• Investing about $600 billion annually to transition to a net-zero world by 2050.
• Raising income sixfold to over $12,000 per capita.

The Textiles and Fashion Industry: A Pillar of India’s Economy

India is a major player in the global textiles and fashion industry:

• India is the largest cotton producer in the world, contributing 23% of global production and having the highest area under cotton cultivation (39% of the world’s area). Cotton plays a major role in sustaining the livelihood of an estimated 6.5 million cotton farmers1.
• The domestic apparel and textile industry in India contributes approximately 2.3% to the country’s GDP, 13% to industrial production, and 12% to exports2.
• India has a 4% share of the global trade in textiles and apparel2.
• India is one of the largest producers of cotton and jute in the world. It is also the second-largest producer of silk, and 95% of the world’s hand-woven fabric comes from India3.
• Currently, India’s textile exports are at $36 billion and are projected to reach $100 billion by 20303.
• The textiles and apparel industry in India is the second-largest employer in the country, providing direct employment to 45 million people and 100 million people in allied industries3.

Unlocking Extraordinary Growth: Sustainability, Circularity, and Tradition

So, how can Indian companies achieve extraordinary growth in this dynamic sector? The answer lies in embracing sustainability, circularity, and the rich heritage of Indian crafts. No other country is as well-positioned as India.

1. Emphasis on Sustainability and Circularity: Indian companies need to focus on sustainable practices and circular economy models. This includes reducing waste, recycling materials, and adopting eco-friendly production methods.

2. Leveraging the Large Workforce: With the largest young workforce in the world, India has a unique advantage. Upskilling and formalizing traditional handicrafts, weaving techniques, and handlooms can create numerous job opportunities.

3. Promoting Traditional Indian Art and Crafts: India’s rich heritage in textiles, including traditional fabrics, printing, and weaving techniques, can be promoted globally. This not only preserves cultural heritage but also creates niche markets.

4. Capitalizing on Cotton and Polyester Production: As a top producer of both cotton and polyester, India can cater to diverse market needs, from high-quality natural fibers to versatile synthetic options.

5. Enhancing Export Opportunities: With a large consumer base and strong export capabilities, Indian companies can expand their global footprint. The projected increase in textile exports to $100 billion by 2030 is a testament to this potential.

6. Leading in Sustainability: With Extended Producer Responsibility (EPR) and other waste-related regulations coming up in the EU, India is well-placed to lead in sustainability. The country has one of the world’s most evolved and established textile recycling ecosystems, which is non-existent elsewhere.

However, realizing this potential requires a concerted effort from all stakeholders—large exporters, brands, organizations, educational and design institutes. At the Global Alliance For Textile Sustainability Council (GATS), we are working to build bridges between brands and manufacturers to create a waste-free, more circular, and sustainable fashion industry. We collaborate with leading educational institutions to nurture future leaders and work with government and international organizations to create policies that promote a conscious and forward-thinking textiles and fashion industry.

Suggestions for Stakeholders

To realize the vision of a thriving, sustainable, and circular textiles and fashion industry, all stakeholders must actively contribute:

For Brands:

• Adopt Circularity: Embrace circular design principles to ensure products are durable, repairable, and recyclable. Prioritize the use of recycled materials, particularly recycled cotton, in your collections, and implement effective waste management practices.
• Promote Transparency: Build trust by sharing details about your supply chains, sustainability efforts, and circular initiatives with consumers. Transparency is key to fostering a sustainable brand reputation.
• Collaborate with Local Artisans, Recycling, and Waste Management Companies: Partner with traditional craftsmen, handloom weavers, and recycling companies to merge modern fashion with India’s rich heritage. This approach not only preserves traditional crafts but also supports waste management efforts, creating unique, marketable products.

For Manufacturers:

• Invest in Sustainable Practices: Upgrade to eco-friendly production processes that minimize water and energy consumption and reduce waste. Establish and invest in recycling facilities to manage textile waste effectively, contributing to a circular economy.
• Support Workforce Development: Offer continuous training and skill development opportunities, particularly for women and rural populations, to enhance productivity and ensure a skilled workforce for the future.
• Engage in Ethical Sourcing: Prioritize ethical sourcing of raw materials, ensuring fair wages and safe working conditions throughout the supply chain. Ethical practices not only support workers but also enhance the potential for export growth.

For Educational Institutions:

• Integrate Sustainability into Curricula: Develop and implement courses focused on sustainable fashion, the circular economy, and ethical business practices. Encourage students to innovate within these frameworks, preparing them for future industry challenges.
• Foster Industry Partnerships: Establish collaborations with industry players, including brands and manufacturers, to offer internships, hands-on training, and research opportunities that align with the needs of a sustainable industry.
• Promote Entrepreneurship: Encourage entrepreneurship in the textiles and fashion sector, particularly in areas related to sustainability and traditional crafts. Provide guidance, mentorship, and resources to budding entrepreneurs, empowering them to drive industry change.

For Government Bodies:

• Create Supportive Policies: Develop and enforce policies that promote sustainability and circularity within the textiles and fashion industry. This includes offering incentives for recycling, waste management, and adopting sustainable practices.
• Invest in Infrastructure: Support the creation of necessary infrastructure for recycling and waste management in the textiles sector, facilitating the transition to a circular economy.
• Encourage Innovation and Research: Fund research and development initiatives focused on sustainable materials, processes, and technologies. This support will help India become a global leader in eco-friendly textiles and fashion.

Conclusion: A Collective Effort for a Sustainable Future

India’s textiles and fashion industry stands at a pivotal moment. By leveraging its young workforce, embracing sustainability, and preserving its rich tradition of crafts and handlooms, India can lead the world in creating a circular, sustainable, and prosperous industry. It will take a collective effort, but the rewards will be immense—not just for India, but for the entire planet.

Together, we can shape the future of textiles and fashion in India, making it a beacon of sustainability, innovation, and economic empowerment. Let’s seize this opportunity to create an industry that not only thrives but also uplifts the lives of millions, ensuring a brighter future for all.

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