By Abhishek Jani, CEO, Fairtrade India Project
India’s fashion industry has been successful for years, but growing headwinds from national and international sustainability regulations, changing consumer preferences, global brands pushing for ESG and sustainability-based sourcing is affecting the industry’s future growth prospects. The fashion industry is realizing that business as usual needs a fundamental shift and that the future of fashion will have to be built on a more sustainable approach.
Why the Fashion Industry Must Change
Fashion is considered to be one of the most polluting industries in the world. The industry is accused of excessive water usage, heavy reliance on chemicals, resource intensive and heavily polluting raw materials, poor health & safety standards in factories, and with almost 100 billion new clothes produced every year— extreme overproduction, enough to dress the next six generations—fashion’s detrimental impact is earth-shaking.
In India, the concern for sustainability is now translating to changing consumer choice. Surveys show that 60% of Indian consumers choose sustainable products, and on average, are ready to pay 13% more for them1. Wealthier Indians report that almost 92% of them are ready to pay more for products that are socially and ecologically sound2. This is indicative of changing consumer behaviour.
The Rana Plaza tragedy in Bangladesh was a very clear indication of what we were risking. It resulted in global consumer movements like Fashion Revolution to come into being. The younger generation in India is also raising their voices for more transparency, justice, and sustainability, and businesses that do not recognize this are doing so at their own risk.
The Drivers Behind the Transformation
Several forces are coming together to propel the industry to a sustainable future:
- Consumers and Civil Society: Today’s younger generation is insisting on change and are increasingly voting for sustainable fashion with their wallets.
- Regulations: The UK Modern Slavery Act, the EU Corporate Sustainability Due Diligence Directive (CSDDD), and India’s Business Responsibility and Sustainability Reporting (BRSR) framework are only some instances of how authorities are holding companies accountable for their actions.
- Investors: Funds linked to ESG, pension funds, and green finance schemes are supporting businesses that follow sustainable practices.
- Business Leadership: Both global and Indian brands are making decarbonisation pledges publicly and are requiring their supply chains to achieve tough carbon reduction targets.
These are not just a few steps but are factors transforming the very core of the fashion industry.
Lessons From India’s Supply Chains
The transformative signs that one sees in India are very positive. Export-oriented manufacturers such as Arvind, Shahi, and Madura are leading the way in adopting green practices. Farmer organisations are adopting Organic & Fairtrade farming to get the right price besides reducing chemical inputs. Manufacturers like Armstrong Knitting Mills, Pratibha Syntex and SAGS Apparels are leading the way for the use of renewable energy, water recycling, and fair labour practices on a large scale and as MSMEs.
From the brands side, a number of D2C brands are making sustainability a major part of their identity, additionally, some high-street retailers like Being Human and Indian Terrain are launching eco-collections and lower plastic packaging. The market for sustainable athleisure in India was worth USD 3.13 billion in 2023 and is forecasted to grow up over USD 7.09 billion by 20303. The above examples show that sustainability is not only doable but also financially viable and scalable.
Moving From Pledges to Practice
For fashion brands, success in the next decade will depend on embedding sustainability into their core strategy. Four principles are non-negotiable:
- Traceability and Transparency: Technology-enabled traceability ensures authenticity of claims.
- Collaboration Across the Value Chain: Brands must work with farmers, artisans, and manufacturers to ensure sustainability is both impactful and economically viable.
- Circularity by Design: Designing for longevity, reusability, and recyclability is essential.
- Consumer Engagement: To paraphrase Anna Lappe- Every purchase is a vote for the kind of world we want; brands must invest in telling this story honestly.
Challenges and the Call to Action
There will be many obstacles ahead, that will try to derail the progress. One of the growing problems is greenwashing which puts the consumer trust in jeopardy; and small businesses (MSMEs) — the lifeblood of the Indian textile industry — are facing financial and technical constraints. Meanwhile, consumer awareness is still patchy: although urban wealthy Indians are showing very strong inclination, the rest of the market is more price sensitive. This is important, as the Indian readymade garments industry- currently valued at USD 103.5 billion- is expected to rise to nearly USD 146 billion by 20334. If sustainability is not scaled up across the market, the huge impact that can be made will simply be overlooked. Sustainability should not be something that is considered a niche—it has to become the standard. As a positive sign, the government programs under the Ministry of Textiles are helping clusters to implement eco-friendly strategies, with the Tiruppur Exporters’ Association being one of the industry associations that is leading by example in getting the collective action.
Identity, creativity, and culture have been fashion’s main themes through history. The following fashion era should also reflect accountability. Creating thriving sustainable fashion brands isn’t only about lessening the negative impact on the environment; it’s also about opening up to new markets, getting the consumers’ trust, and becoming more competitive globally.