India's Textile Industry Embraces AI for Global Competitiveness

India’s textile sector, with roots tracing back to the Indus Valley civilisation, is undergoing a digital transformation, particularly within its micro, small, and medium enterprises (MSMEs). Textile hubs like Tiruppur in Tamil Nadu are adopting artificial intelligence (AI) across their manufacturing value chains, from designing and sewing to logistics and spinning.

The Tiruppur Exporters’ Association (TEA) notes that AI has improved production efficiency by 10%, helping the region regain its status as a knitwear export powerhouse, contributing 55% of the country's total. Tiruppur’s knitwear exports crossed Rs. 40,000 crore (US$ 4.61 billion) in FY25 for the first time.

Automation through Computer-Aided Design/Computer-Aided Manufacturing (CAD-CAM) machines, precision stitching tools, and predictive maintenance has enabled output gains and reduced wastage, even as the sector grapples with labour shortages. MSMEs nationwide are increasingly adopting smart technologies, including Software as a Service (SaaS) platforms like Reverse Resource, which digitise supply chains and support sustainability goals.

AI-based sewing machines from global manufacturers such as Yamato and Juki are becoming common in Tamil Nadu’s factories. Even small units are embracing tools like ChatGPT and Canva to remain relevant in global markets. With growing demand from international retailers such as Walmart, GAP, and Marks & Spencer, Indian firms are scaling up AI-powered infrastructure.

However, while advanced stitching robots are being trialled in Japan, Indian industry leaders stress that AI adoption should enhance, not replace, labour. The sector is striving for a hybrid approach where technology upgrades the skills of existing workers and boosts productivity while preserving employment opportunities.

Impact of AI on Textile Production

AI adoption in the textile industry is not just about automation; it’s about enhancing human capabilities. For instance, AI-driven CAD-CAM systems help designers create more intricate and precise patterns, reducing errors and saving time. Predictive maintenance algorithms monitor machinery health, preventing breakdowns and downtime. This holistic approach ensures that the industry remains agile and responsive to market demands.

Global Market Dynamics

International retailers are increasingly looking for sustainable and efficient supply chains. AI tools help Indian textile companies meet these demands by optimizing production processes and reducing environmental impact. For example, Reverse Resource’s platform helps companies track and manage their waste, ensuring that materials are recycled or reused effectively.

Challenges and Opportunities

Despite the benefits, the textile sector faces challenges such as the need for skilled labor to operate advanced machinery and the initial costs of implementing AI solutions. However, the long-term gains in efficiency and quality are substantial. Training programs and government incentives are crucial in overcoming these hurdles.

Future Outlook

As AI continues to evolve, the Indian textile industry is well-positioned to leverage these technologies for sustainable growth. By fostering a culture of innovation and collaboration, the sector can maintain its global competitiveness and contribute significantly to the nation’s economy.