As global markets tighten sustainability benchmarks and climate-linked trade norms gather pace, India’s textile industry faces a structural pivot toward low-impact materials, circular production and greener supply chains. In an interaction with Et Online, Naresh Tyagi, Chairman of the ICC National Expert Committee on Sustainability, and Chief Sustainability Officer of Aditya Birla Fashion & Retail Limited, outlines how fibre innovation, recyclable design, green logistics and new-age skills will determine competitiveness—while stressing that scale, cost neutrality and ecosystem collaboration will be critical to moving from pilot projects to mainstream adoption. Edited excerpts:

ET: How are textile and apparel companies strengthening innovation and R&D to develop low-impact fibres and next-generation regenerative materials?

Naresh Tyagi (NT): Textile and apparel companies are increasingly prioritising innovation and R&D to develop alternative, low-impact materials that can replace or improve upon conventional fibres. The focus is on sustainable substitutes with lower carbon and water footprints, alongside regenerative and circular material models.

Both large industry players and start-ups are investing in material science to enhance the sustainability profile of existing fibres and develop new ones aligned with national and global climate goals. Recycling, circularity and resource efficiency are now central to R&D strategies, reflecting a broader shift towards low-emission, low-resource textile production.

ET: In what ways are eco-conscious inputs such as organic, recycled, or circular fibres—being embedded into long-term product and sourcing strategies?

NT: Eco-conscious inputs are gradually being integrated into long-term product design and sourcing strategies, with circularity at the core. Companies are exploring recyclable, reusable and repairable materials guided by principles such as reuse, recycle, repair, resale and remanufacture. While adoption is more advanced in Europe and Nordic countries, India is witnessing early momentum through pilot projects and selective sourcing initiatives. Awareness is strong, but widespread integration into core sourcing and merchandising strategies will depend on scalability and cost competitiveness.

ET: What investments and operational shifts are being made to enable circular business models, including fibre recycling, product repair, and material regeneration?

NT: Investments are being channelled into fibre-to-fibre recycling, yarn regeneration and scalable recycling infrastructure. Several innovations have progressed from laboratory research to pilot and test runs. Companies are evaluating how circular models can be embedded across sourcing, manufacturing and post-consumer recovery processes. Commercial viability—particularly cost competitiveness—remains a challenge. However, as technologies mature and economies of scale improve, the transition from pilots to mainstream operations is expected to accelerate.

ET: How is the sector reducing its environmental footprint across transportation, warehousing, and packaging through greener logistics solutions?

NT: The sector is increasingly addressing logistics-related emissions as part of broader decarbonisation commitments, including net-zero and Science Based Targets initiatives. Companies are focusing on Scope 1, 2 and particularly Scope 3 emissions, where transportation and logistics play a critical role. Key measures include route optimisation, improved load efficiency and adoption of low-emission and electric vehicles. In India, large-scale railway electrification and gradual EV adoption are supporting this transition. While still evolving, both large and mid-sized companies are taking concrete steps to reduce carbon intensity across upstream and downstream supply chains.

ET: As green employment gains momentum in India’s textile ecosystem, how are organisations reshaping workforce strategies to integrate sustainability-driven roles?

NT: Sustainability has evolved from a peripheral concern to a core element of corporate strategy, particularly over the past decade and post-COVID. Organisations are embedding sustainability into operational excellence initiatives focused on resource efficiency, productivity and cost optimisation. Workforce strategies are expanding sustainability-driven roles across functions rather than limiting them to specialised teams. This reflects a growing recognition that ecological responsibility and economic performance are increasingly interconnected.

ET: Which emerging skills and competencies will be most critical for the industry to bridge talent gaps and support the growth of green jobs in the coming decade?

NT: As the industry transitions from a linear, resource-intensive model to circular and net-zero value chains, new skill sets will be critical. These include circular manufacturing, sustainable materials, clean technologies, green logistics, innovation and digital enablement. Green jobs are expected to expand across production, raw materials, technology, logistics and R&D. Estimates suggest that the transition to circular systems and net-zero value chains could generate up to 20 million new jobs. This will require talent equipped with systems thinking and the ability to integrate technology with sustainability objectives.

ET: What collaborative or systemic interventions can help fast-track circularity across the entire textile value chain—from raw fibre production to post-consumer recovery?

NT: Accelerating circularity will require systemic change driven by innovation, collaboration and technology enablement. No single organisation can achieve this transition alone; partnerships across brands, manufacturers, recyclers, technology providers and policymakers will be essential. Digitisation will play a key role in enabling traceability, strengthening recycling systems and improving post-consumer garment recovery. A coordinated ecosystem approach, supported by scalable innovation and R&D, can position India as a global hub for sustainable, affordable and circular textiles.

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