Green Threads: The Rise of Renewable Energy in India's Textile Industry

The Indian textile industry is seeing increased adoption of renewable energy, rising from 14% to 18% of total energy use by FY2025. Despite this, energy intensity per revenue unit has also increased. Improvements were noted in different segments, but challenges persist for energy efficiency and Scope 3 emissions reporting.

The Indian textile industry is experiencing a significant shift towards renewable energy, according to a new report by ICRA ESG Ratings Ltd. The report reveals that the industry's reliance on renewable sources has increased from 14% in FY2023 to nearly 18% by FY2025, signifying a gradual but meaningful transition.

Despite this progress, the energy intensity, or energy use per unit of revenue, has risen. Apparel companies showed a modest increase in renewable energy use due to feasible solar solutions, while the yarn and fabric segment made a notable leap from 3% to 8% due to solar and biomass advancements.

Greenhouse gas emissions have decreased in some segments, yet emission intensity remains a challenge, particularly in the apparel sector. The report underscores the urgency for improved Scope 3 emissions reporting and greater investments in renewable projects and advanced technologies to ensure competitiveness and leadership in a sustainability-driven global market.