Scaling up will need the same level of policy support and government backing as the mainstream textile sector, say industry insiders, pointing to structural challenges.

According to Ajoy Bhattacharya, President of the Textile and Apparel Development Association (TAADA), the sustainable textile market has the potential to double with the right government policy decisions.

But there are concerns. The biggest among them are raw material consistency; expensive processing machinery; the scale problem; market education cost; greenwashing competition; and textile industry inertia.

Sustainable Fashion

The Netherlands is considered a global hub for sustainable textile fashion innovation, known for circular textiles, banana fibre innovations, recycled blends, and startup collaborations. The Port of Rotterdam enables easy distribution across Europe. 

France has a massive luxury fashion market, while Italy is globally recognised for textile craftsmanship. Japan represents a high-value market and South Korea is rapidly growing in eco-fashion. In addition, Australia, the Middle East, Europe, and the United States remain some of the largest global markets.

India is the world’s largest producer of organic cotton, with Gujarat, Maharashtra, and Madhya Pradesh being major contributors. Panipat in Haryana is considered the hub of recycled textiles. Uttarakhand and Himachal Pradesh lead in hemp production. Northeast India, Maharashtra, and Karnataka are prominent in bamboo-based fibres, while Tamil Nadu, Kerala, and Assam are emerging leaders in banana fibre and agro-waste textiles.

What India Already Has

India possesses major advantages such as agricultural waste availability, textile knowhow, affordable labour, and a strong craft heritage. With better processing technology, quality standardisation, and global branding, the country has the potential to become a global leader in sustainable textiles.

Bhattacharya said that valuable fabrics can be developed not only from cotton but also from bamboo, hemp, flax, cotton flax, banana fibre, and Himalayan grass through fibre extraction and processing. 

“Since these fabrics are environmentally friendly, consumers are increasingly preferring them, while farmers are also gaining a new source of income,” Bhattacharya told The Secretariat. 

He said the global demand for organic and natural fabrics is growing rapidly. “If textile mills invest in research and innovation in this field, they can compete with international brands,” Bhattacharya said. 

TAADA is working to train entrepreneurs, provide guidance, and create platforms for eco-friendly textile manufacturing. 

Current policy support for textiles includes the National Technical Textile Mission, Textile PLI Scheme, Startup India-DPIIT recognition, Micro, Small, and Medium Enterprises (MSME) schemes, Khadi and Village Industries Commission (KVIC) village industry support, and state-level policies such as those introduced by Uttarakhand.

The Global Picture

According to current industry estimates, the global sustainable textile market is valued at around US$ 60-70 billion and could reach US$120 billion by 2030. 

India’s overall textile market currently stands at around US$160-180 billion, with the government aiming to expand it to US$350 billion. Sustainable textiles currently account for US$12-20 billion in India and are expected to grow to US$60-100 billion over the next four years.

Among the global leaders in the sustainable textiles segment, China is known for scale manufacturing; India for raw material production; Bangladesh for garment exports; Vietnam for sustainable garment manufacturing; Germany for eco-market demand; and Sweden for circular textile innovation.

Major Clusters

The major sustainable fibre clusters in India are Gujarat – Kala cotton, organic cotton, natural dye textiles, handloom sustainable fabrics; Tamil Nadu – organic cotton garments, bamboo blends, sustainable knitwear, export apparel; and Uttarakhand – industrial hemp, hemp yarn, hemp apparel.

Then there are Maharashtra – bamboo fibre, bamboo products, green manufacturing; Assam & Northeast India – bamboo, banana fibre, Eri silk, natural handloom; Kerala – bamboo linen, banana fibre crafts, eco mats and home products; Karnataka – eco textiles, agro-waste materials, and circular products; West Bengal – jute yarn, eco bags, sustainable packaging textiles; and Punjab-Haryana-Rajasthan – native cotton revival, alternative fibres, and agro-waste textiles.