India’s textile and apparel industry has started adopting artificial intelligence (AI), automation and digitalisation, but its overall readiness remains uneven, with significant gaps in digital systems, skills and investment capacity across the value chain, according to a new study by the Confederation of Indian Textile Industry (CITI).
The study, titled AI, Automation & Digitalisation Readiness in the Indian Textile & Apparel Industry, was conducted by CITI with support from the Northern India Textile Research Association (NITRA). It was released by Uttar Pradesh Chief Minister Yogi Adityanath at UP TEX 2026 in Lucknow.
The study covers the wider textile value chain, including spinning, garmenting, home textiles, technical textiles and allied services. Respondents represented enterprises across different turnover categories, with significant participation from small and mid-sized businesses. Around 70% of respondents cater to export markets, with export contribution ranging from zero to more than 75% of business.
According to the findings, 35% of firms have not yet started adopting AI, while 38% operate without a digital system. Only around 14% reported having fully integrated digital systems.
Automation adoption remains concentrated in routine applications such as machine monitoring and machine setting, while areas including production scheduling have recorded lower adoption. High investment costs and shortages of skilled talent were identified as the leading barriers to wider technology adoption.
Ashwin Chandran, Chairman, CITI, said AI, automation and digitalisation are becoming important for productivity, quality, resilience and competitiveness across the textile value chain. He added that the industry has begun its technology adoption journey but needs to strengthen its digital foundations, skills and capabilities.
The study also found that technology is having a mixed impact on employment, while training remains largely informal and enterprise-led. Globally, India remains at the “early-to-emerging” stage of AI and digital adoption in textiles and apparel and continues to trail China, highlighting the need to accelerate technology adoption and strengthen digital capabilities to improve global competitiveness.
