Entrepreneurs

India’s fashion industry is entering a decisive phase. For decades, growth was built on scale, low-cost production, and global demand. But with sustainability regulations tightening worldwide, consumer preferences shifting, and global brands embedding ESG into sourcing strategies, the industry now faces a fundamental reset. The path forward is clear: the future of fashion must be grounded in sustainable sourcing and responsible production. Why the Fashion Industry Must Change Fashion is widely regarded as one of the most polluting industries globally. Excessive water use, heavy reliance on chemicals, unsafe working conditions, and extreme overproduction—close to 100 billion garments annually—have created severe environmental and social costs. In India, sustainability concerns are translating into consumer choices. Research shows 60% of Indian shoppers prefer sustainable products, and on average are willing to pay 13% more for them. Among higher-income groups, this readiness is even stronger, with 92% stating they would pay more for socially and environmentally responsible goods. The younger generation is demanding transparency and accountability. Incidents such as the Rana Plaza disaster in Bangladesh highlighted the risks of neglecting sustainability, sparking global movements like Fashion Revolution. Businesses that ignore these signals risk losing relevance in the evolving marketplace. Key Drivers of Transformation Several forces are converging to accelerate sustainability in fashion: Consumers and Civil Society: Younger buyers are actively choosing sustainable brands, creating direct pressure on businesses. Regulations: Measures such as the UK Modern Slavery Act, the EU Corporate Sustainability Due Diligence Directive (CSDDD), and India’s BRSR framework are holding companies accountable across their supply chains. Investors: ESG-linked funds, pension schemes, and green financing initiatives are increasingly rewarding businesses with strong sustainability practices. Business Leadership: Both global and Indian companies are committing publicly to carbon reduction and decarbonisation goals, cascading these requirements through their supply chains. These drivers are not superficial—they are reshaping the very foundation of the fashion industry. Lessons from India’s Supply Chains Positive shifts are already visible within India’s supply chain. Export-oriented manufacturers like Arvind, Shahi, and Madura are early adopters of green practices, while farmer organisations are turning to organic and Fairtrade farming to improve returns and reduce chemical use. Manufacturers such as Armstrong Knitting Mills, Pratibha Syntex, and SAGS Apparels are pioneering large-scale adoption of renewable energy, water recycling, and fair labour practices. Importantly, many MSMEs are also embedding sustainability into their operations, demonstrating that sustainable transformation is achievable across all business sizes. The Road Ahead Sustainability is no longer a niche consideration but a competitive necessity. Regulations, financing models, and consumer behaviour are aligned in one direction—towards responsible sourcing and transparent supply chains. For Indian brands, this shift presents both challenges and opportunities. Those who adapt quickly will not only meet global compliance standards but also strengthen their long-term growth prospects. By embedding sustainability at the core, Indian fashion has the potential to position itself as a global leader in ethical, environmentally responsible apparel production. The next chapter of India’s fashion industry will be defined not just by creativity and scale, but by its ability to deliver sustainable value across the supply chain.