India’s textile industry is accelerating its shift towards renewable energy, yet overall energy intensity has risen across key segments, according to a new analysis by ICRA ESG Ratings Ltd. The findings, released as part of the report Sustainability Unstitched: Indian Textile Industry’s Green Gauge, are based on an assessment of 19 major companies, including Page Industries, Welspun Living, Arvind and KPR Mill, covering FY 2023 to FY 2025.
The report shows that the sector’s average share of renewable energy in total consumption increased from roughly 14% in FY 2023 to nearly 18% in FY 2025. Apparel manufacturers recorded the highest use of renewables, rising from 26% to 28%, supported by the suitability of rooftop solar for electricity-dependent processes such as cutting and stitching.
The yarn and fabric segment posted the largest proportional improvement, climbing from 3% to 8% as leading players expanded solar and biomass initiatives. Integrated textile units increased their renewable share from 17% to 21%, driven by captive solar capacity and long-term green power contracts.
Despite these gains, the energy required to generate each crore of rupees in revenue grew by 6–8% compared with FY 2023. Apparel companies saw a sharp 28% rise, attributed to scale expansion and increased use of premium, energy-intensive finishing technologies. Yarn and fabric firms, the most energy-intensive in the value chain, recorded an 8.5% increase, partly due to revenue contraction in FY 2024. Integrated players saw a modest rise of 6%, supported by investments in automation and waste heat recovery.
Emission intensity trends were mixed. Integrated companies reduced their greenhouse gas emission intensity by about 5%, and yarn and fabric producers by around 8%. Apparel manufacturers, however, recorded a 12% increase driven by higher production volumes.
Reporting of indirect Scope 3 emissions remains limited. Only 21% of companies in the sample disclosed Scope 3 data in FY 2025—29% in the integrated segment, 20% in apparel and 14% in yarn and fabric.
Sheetal Sharad, Chief Ratings Officer at ICRA ESG Ratings Ltd, said the sector’s sustainability transition is progressing but must accelerate. She noted that companies integrated into global value chains would benefit from higher ESG maturity, adding that progress requires investment in advanced technologies and renewable energy solutions. She emphasised that targeted interventions in energy-intensive upstream processes such as spinning, weaving and wet processing are essential to ensure India’s competitive position in a sustainability-focused global market.
The report calls for more captive renewable energy projects, stronger energy-efficiency measures and improved Scope 3 emissions reporting to align Indian industry practices with international standards.
Bharat Tex Special Report 2026 
