Domestic Textile Industry Actively Moving Over To Renewable Energy

The Indian textile sector is proactively participating in country’s transition to cleaner energy.  Despite challenges, the industry has shown active pursuit to significantly enhance its usage of non-fossil-based energy like solar and wind power, aligning with India’s broader energy transition strategy. In fact, textile industry is considered to be among the most energy-intensive industries. It accounts for more than 4 per cent of the total industrial energy consumption and 5 per cent of total industrial emissions. Therefore, there is increasing pressure from the government and end consumers to adopt sustainable practices and improve energy efficiency.

India has charted an energy transition roadmap aligned with its economic priorities, aiming to achieve Prime Minister Narendra Modi’s vision of 500 GW of renewable energy by 2030, amounting to 50 per cent cumulative electric power installed capacity from non-fossil fuel-based energy resources and net-zero emissions by 2070. Currently, India’s total installed power capacity stands at 476 GW (as of June 2025), out of which non-fossil energy already constitutes 49 per cent, i.e 235.7 GW, including around 227 GW renewables.

“Achieving net-zero emissions by 2070 is not just an ambitious target—it is a critical call to action, requiring a multi-faceted approach that integrates policy interventions, technological advancements and sectoral reforms. The growing shift toward clean energy reflects the country’s commitment to reducing carbon emissions and enhancing energy security,” says an E&Y report.

Pursuing its energy transition journey, the domestic textile sector has made significant progress. A case in point is the spinning sector in Tamil Nadu. The southern state which hosts almost 45 per cent of India’s total spinning capacity (i.e. around 45 million active spindles across various states), has been in the forefront of augmenting its adoption of cleaner energy. Today, almost 70 per cent of spinning units in the state are using renewable energy in varied proportion –from 40 per cent to as high as 90 per cent from renewable sources, primarily wind and solar. A majority of units exporting yarn have fully transitioned to cleaner energy.

K Selvaraju, Secretary General, Southern India Mills’ Association (SIMA).

“Spinning mills in Tamil Nadu started investing in renewable energy, primarily wind energy, more than 25 years ago to reduce electricity costs and greenhouse gas emissions. Besides the state’s favourable Energy Banking Policy, the industry received a five per cent interest subsidy previously under the Technology Upgradation Fund (TUF) for installing windmills, which led to the installation of 80 per cent of the wind mills in the state. Currently, textile industry owns 3,000 MW wind power and 1,500 MW solar power in the state, as the single largest captive consumer,” says K Selvaraju, Secretary General, Southern India Mills’ Association (SIMA).

In Tamil Nadu itself, knitwear cluster Tirupur, which has over 60 per cent share of country’s knitwear exports (around Rs 45,000 crore), has today emerged as one of the completely transformed apparel manufacturing hubs in the country.  From hosting one of the most polluting textile value chain till a few years ago, Tirupur is currently a fully `Zero Liquid Discharge’ garment cluster where the water used by its dying and processing units are treated at common affluent treatment plants and reused. More importantly, the entire cluster has fully transitioned into cleaner energy. The cluster, which is aiming to increase its exports to Rs 1,00,000 crore by 2030, boasts a green energy capacity of 1,950 MW, including 1,600 MW from wind power and 350 MW from solar power even as its total consumption is just 350 MW.

K M Subramanian, President, Tirupur Exporters Association (TEA).

“Today, Tirupur can easily be called a truly sustainable cluster. Initially, it was not a very smooth journey, but most of our units have shown a great deal of resilience and grit to achieve this milestone. This has helped Tirupur to do away with fossil fuel-based conventional energy even as circularity, which lies at the core of its journey, has positioned Tirupur as a leader in sustainability endeavour,” says KM Subramanian, President, Tirupur Exporters Association (TEA).

Next to raw material cost, since energy makes up 15-20 per cent of the total production cost in the textile industry, any reduction in the energy cost can boost the overall margins. Out of the total energy consumption, about 34 per cent of energy is consumed in spinning, 23 per cent in weaving, 38 per cent in chemical processing and another 5 per cent for miscellaneous purposes.

Experts are of the view that clean energy sources like solar, wind, and biomass can significantly reduce energy costs in the textile industry as compared to relying on conventional energy sources such as fossil fuels. By adopting renewable energy, textile manufacturers can lower their operational expenses, reduce their carbon footprint, and enhance their brand image.

Among the large companies, Arvind Mills, which operates nine manufacturing facilities across Gujarat, Maharashtra and Karnataka, sources over 44 per cent of its total annual energy consumption from renewables, including solar, wind, and biomass. Apart from augmenting its energy transition effort, in FY2024, the use of renewable energy by Arvind led to annual cost savings of around Rs 330 crore. Textile major Welspun is also actively shifting towards renewable energy as part of its broader environmental, social and governance (ESG) initiatives. The company aims to achieve 100 per cent renewable energy usage in its operations by 2030.

B K Goenka, Chairman, Welspun World.

“We understand that business success is inextricably linked with sustainability. As a result, we have made significant efforts to establish ourselves as a responsible and sustainable business and have not gone unnoticed. I am proud to share that we have achieved a commendable score of 66 in the latest Dow Jones Sustainability Index rating,” says B K Goenka, Chairman, Welspun World.

Today not only large textile companies, but small units are also investing in adoption of cleaner energy. These units are increasingly adopting RE through solar rooftops and captive open access mechanisms. Many of these units in the MSME sector, exporting to overseas markets, are also being insisted by the buyers to adhere to sustainability and circularity practices. Meanwhile, the Central government has recently also released a national framework for promoting decentralised renewable energy (DRE). Having decentralised renewable energy sources like rooftop solar panels, micro or mini-grids and rechargeable batteries help promote increased access to affordable, reliable and clean energy services.

Chandrima Chatterjee, Secretary General, Confederation of Indian Textile Industry.

“The domestic textile sector, despite multiple headwinds, has invested heavily in carrying out its energy transition goals. Going forward, there are plans to enlarge the share of cleaner energy in a big way. Towards this end, the industry needs a long-term policy thrust to incentivise the whole process,” says Chandrima Chatterjee, Secretary General, Confederation of Indian Textile Industry.

“Any transition calls for a meticulous planning and its implementation, and here adoption of new technologies (like AI and advanced analytics) can play a big role in facilitating a seamless shift. Moreover, these new generation technologies can help build a more efficient and robust production set-up in any manufacturing activites,” states Rahul Jadhav, Partner, Consulting, E&Y.

Despite impediments, the domestic textile sector has been proactive in pursuing its energy transition journey. The industry has also reaped the benefits of adoption to cleaner energy. However, in order to expedite the whole process in a more seamless manner, there is need for greater policy supports and incentives.