India's rapidly expanding fashion and apparel sector is on track to become a $350 billion industry by 2030, but this economic success story carries a heavy environmental price tag. Growing at an impressive rate of over 10% annually, the industry now faces urgent calls for a systemic clean-up to prevent it from derailing the nation's climate goals.
The Unforgiving Arithmetic of Fashion and Climate
The global fashion industry is responsible for a staggering 10% of annual carbon emissions, a footprint larger than all international flights and maritime shipping combined. Adding to the crisis, the world generates 92 million tonnes of textile waste each year, with less than 1% being recycled into new clothing. India's production surge is happening amidst clear evidence that merely improving efficiency per garment cannot compensate for the massive increase in total volume.
The current approach to sustainability in India is often superficial, treating it as an optional add-on. Initiatives like installing solar panels or using recycled materials, while positive, are insufficient on their own. Research consistently shows that explosive growth in garment production simply swallows any gains made from improved efficiency, leading to a net increase in overall emissions.
This trend is fueled by domestic clothing consumption, which is rising at 10-12% per year, far outpacing mature markets. Fast fashion, driven by low prices and constant novelty rather than durability, is rapidly penetrating smaller Indian cities.
Three Hard Truths Blocking a Sustainable Path
To avoid the costly mistakes of Western markets, India must confront three critical and often overlooked realities.
The first is the industry's deep reliance on coal. A significant portion of emissions from Indian textile manufacturing comes from coal-fired boilers used in dyeing and finishing fabrics. Transitioning to electric boilers and heat pumps is technically and economically feasible, as demonstrated by research from the Apparel Impact Institute. However, coal persists due to its low cost, familiarity, and weak regulation in scattered manufacturing zones. Without a clear, time-bound phase-down plan supported by concessional finance and tariff reforms, this high-carbon infrastructure could remain locked in for decades.
The second reality is the business model of overproduction. Fast fashion thrives on producing more than consumers need and then discounting excess inventory. This is not a minor side effect but the core logic of the industry. As long as overproduction continues, material and energy innovations will never be enough. Experts argue that India must move beyond voluntary reporting and mandate large brands and e-commerce platforms to disclose and reduce unsold stock, return rates, and sell-through figures. Treating overproduction as a regulated climate risk, rather than a mere retail issue, could align output with real demand.
The third challenge is the structure of the industry itself. With over 45 million employees and dominated by small and medium enterprises (SMEs) clustered in hubs, a factory-by-factory regulatory approach is destined to fail. Roughly 80% of the sector operates in these clusters. Effective decarbonization requires a cluster-based strategy with shared infrastructure for renewable energy, common waste and water treatment, and pooled financing. Crucially, this transition must include explicit job protection and reskilling programs to prevent political resistance and ensure equitable progress.
A Narrow Window for a Different Future
Despite the challenges, India holds a unique advantage that Europe and North America lost long ago. The country's apparel market and industrial base are still being constructed, and consumer habits are not yet fully set. Industrial clusters are not irrevocably tied to high-carbon systems. This presents a narrow window to embed climate discipline into the growth phase itself, rather than attempting a costly and difficult retrofit later.
The choice is stark. India can proactively shape a sustainable fashion industry now, while options are open, or face a much harder reckoning later when emissions are locked in, competitive pressures intensify, and political flexibility shrinks. The fashion boom represents a tremendous economic opportunity, but only if tough decisions are made before momentum turns into inertia.
The analysis comes from Soumya Sarkar, an independent expert based in New Delhi, Kolkata, and Odisha. The original commentary was published on December 23, 2025.
