Indian Textile Industry Embraces AI To Boost Efficiency And Exports
India’s textile industry, one of the oldest in the world, is undergoing a significant digital transformation as micro, small, and medium enterprises (MSMEs) adopt artificial intelligence (AI) across the value chain. Key manufacturing hubs like Tiruppur in Tamil Nadu are leading the charge, integrating AI into design, sewing, spinning, and logistics operations.
According to the Tiruppur Exporters’ Association (TEA), AI has improved production efficiency by 10%, helping the city reclaim its position as the country’s knitwear export hub, contributing 55% to India’s total knitwear exports. Tiruppur’s knitwear exports surpassed Rs. 40,000 crore (US$ 4.61 billion) in FY25, a new milestone.
Advanced technologies such as CAD-CAM systems, precision stitching tools, and predictive maintenance are driving productivity and minimizing waste, offering a solution to ongoing labour shortages. MSMEs across India are also adopting smart tools, including SaaS platforms like Reverse Resource, which digitize supply chains and support sustainability goals.
AI-enabled sewing machines from global brands like Yamato and Juki are becoming commonplace in Tamil Nadu’s textile units. Even smaller enterprises are using platforms like ChatGPT and Canva to stay competitive in global markets.
With increasing demand from global retailers such as Walmart, GAP, and Marks & Spencer, Indian textile firms are expanding their AI-powered infrastructure. While advanced sewing robots are being trialled in countries like Japan, Indian industry leaders emphasize a balanced, human-tech approach, where AI enhances worker skills and productivity without displacing jobs.
The industry is moving towards a hybrid model that blends traditional craftsmanship with modern technology, ensuring competitiveness while safeguarding employment.
