Picture a sprawling textile mill in Gujarat, its rooftop gleaming with solar panels whilst biomass boilers hum quietly in the background—a scene increasingly common across India’s $175 billion textile industry. As the nation adds a record 27 GW of solar and 3.9 GW of wind power between April and November 2025, something remarkable is unfolding: over 52% of India’s total electricity now flows from non-fossil fuel sources, marking a pivotal milestone in the country’s sustainability journey. Yet perhaps the most compelling transformation is occurring within one of India’s most energy-intensive sectors. The textile industry, long criticised for its environmental impact, is quietly orchestrating its own green revolution. Renewable energy integration has climbed steadily from 14% in FY2023 to nearly 18% in FY2025, with apparel companies leading the charge at 28%. This isn’t merely about compliance or corporate social responsibility—it’s a fundamental reimagining of how India’s textile giants power their operations, reduce costs, and position themselves for a carbon-conscious global marketplace.
Powering Looms with Sunshine: The Renewable Transition Takes Hold
India’s textile industry is actively embracing renewable energy to reduce its carbon footprint and enhance operational sustainability. Recent data from an ICRA ESG Ratings report reveals that the sector’s renewable energy share has grown steadily, with the yarn and fabric segments witnessing particularly notable improvements—from 3% to 8% and from 17% to 21%,** respectively.
This transformation is primarily driven by large companies scaling up their solar and biomass solutions, motivated by both environmental concerns and the tangible economic benefits of green power procurement. Apparel manufacturers have increased their renewable share from 26% to 28%, aided significantly by rooftop solar projects supporting critical processes such as cutting and stitching operations. As Outlook Business reports, the rapid increase in renewable capacity—over 27 GW in just eight months—underscores India’s firm commitment to sustainability and energy transition. This national momentum is creating a favourable environment for textile manufacturers to access cleaner, often more cost-effective energy sources.
India’s focus on green power procurement is further bolstered by government policies promoting decentralised renewable energy solutions. Rooftop solar installations and biomass-based systems are becoming increasingly feasible for textile micro, small, and medium enterprises. According to industry analyst Mousumi Kabiraj, government policies promoting decentralised renewable solutions provide a significant pathway for MSMEs to adopt green energy. These measures are helping the industry offset the high thermal energy consumption typical of dyeing and finishing processes, thereby reducing reliance on traditional fossil fuels. The shift is particularly crucial for water-intensive operations where renewable energy can power both machinery and water treatment facilities.
The Energy Intensity Paradox: Growth Outpacing Efficiency
Despite the encouraging growth in renewable adoption, significant challenges persist that complicate the sector’s full-scale transition towards sustainable energy. The most pressing concern is the energy intensity paradox: whilst the adoption of green power is rising, energy intensity—meaning the energy consumed to produce a unit of revenue—has actually increased by 6-8% between FY2023 and FY2025. The ICRA ESG Ratings report notes that despite the growth, operational scaling and energy-intensive processes are making it challenging to sustain improvements in energy efficiency. This suggests that as textile companies expand production to meet growing demand, their absolute energy consumption is rising faster than their renewable energy integration can offset.
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Additionally, several structural hurdles impede faster adoption amongst smaller players. The lack of awareness about innovative renewable energy procurement models means many MSMEs continue relying on conventional grid power. Regulatory complexities surrounding power purchase agreements and net metering arrangements create confusion, particularly for first-time adopters. Perhaps most significantly, initial capital costs for installing solar panels or biomass systems remain prohibitive for enterprises operating on thin margins.
Policy Support Weaving a Sustainable Framework
Government initiatives are proving instrumental in addressing these barriers and accelerating the green transition. Programmes such as the National Mission on Sustainable Agriculture and ASPiRE provide technology interventions and capacity building specifically targeted at decarbonisation in the textile industry.
These policy frameworks are creating an ecosystem where sustainable practices become economically viable rather than merely aspirational. Subsidies for renewable energy installations, streamlined approval processes, and technical assistance programmes are gradually lowering entry barriers for smaller manufacturers. The outlook remains promising. If industry stakeholders and policymakers collaborate effectively, experts believe India’s textile sector can achieve a substantially higher share of renewable energy adoption. This would position the nation as a global leader in sustainable fashion and textiles, meeting not only domestic sustainability goals but also the increasingly stringent environmental standards demanded by international buyers.
The textile industry’s green transformation represents more than environmental stewardship—it’s a strategic imperative. As European and American markets implement carbon border adjustment mechanisms and consumers prioritise sustainably produced goods, Indian textile manufacturers embracing renewable energy gain competitive advantages. The sector’s journey from 14% to 18% renewable energy share in just two years demonstrates momentum, yet reaching 50% or higher will require sustained policy support, technological innovation, and capital investment. With record renewable capacity additions providing the foundation and government backing accelerating adoption, India’s textile industry stands at the threshold of a genuine green revolution—one that could redefine global perceptions of Indian manufacturing whilst securing the sector’s economic future in an increasingly carbon-conscious world.