How Fashion Tech Is Stitching Together Sustainability And Innovation

How Fashion Tech Is Stitching Together Sustainability  And Innovation

INTRODUCTION

Fashion, long celebrated as a mirror of culture and identity, is revolutionising and defining it with a tech-savvy and sustainable outlook. Over the years, it has been known as the fastest-changing Industry. It is now redefined by eco-conscious practices, digital innovation, and circular design
systems. It is emerging as the fulcrum of transformation by reshaping the production methods, consumption, and use of the raw materials, leading to a shift from traditional to the future of innovation, technological advancements, and sustainability.

But beneath these sparkles lies a serious challenge: the fashion industry is one of the largest polluters in the world, responsible for carbon emissions, excessive water use, and millions of tons of textiles that get wasted each year. This is pushing all the individuals to one goal of conscious consumption, while encouraging operational efficiency and lean manufacturing in the production of garments. This is where sustainable fashion fits in. Sustainable https://fashinnovation.nyc/technology-and-his-role-in-sustainability/ Fashion refers to the manufacture of clothes in a
manner that is more friendly to both the people and the planet. It is concerned with the exploitation of environmentally friendly materials, waste minimisation, recycling of used garments, and fair labour. Simply put, it is about making fashion better, not faster.

Trends were the driving force of fashion throughout the decades, and the emergence of fast fashion turned clothes into cheap and easily available, but also disposable. Technology is assisting in changing that story today. In the same way that the other industries have embraced innovation as a way to become cleaner and smarter, fashion is currently adopting AI, recycling technologies, digital fashion, and blockchain to enter a more sustainable future. This blog will take you through the evolution of fashion and its transformation by technology into a more sustainable one, and the future, in the following sections. The readers will be able to get a clear picture of how the industry has come so far in its history, to its current innovations and prospects in the future.

Historical Context

Fashion is the history of human evolution as well. In the Pre-industrial period, clothing was homemade, slow and valuable. Clothing was patched, recycled and even inherited through families. There was also little waste as clothes were designed to be worn. During the Industrial Revolution (18th–19th century), it all depended on mechanisation. Mass production was made possible by power looms, spinning machines and sewing machines. Fashion emerged as a separate industry when clothing became cheap and affordable to the upper middle classes. Later,
in the globalisation period (1980s–2000s), global trade became liberal, and the supply chains extended all over the globe. Fast fashion, such as Zara, H&M, and Forever 21, has led to the creation of cheap and fashion-driven clothing at such a high rate. People purchased more but spent less time wearing clothes, which resulted in huge waste. Today, in the present-day turnover, fashion is at a new turning point. The industry is being forced to reinvent itself through climate change, scarcity of resources and consumer awareness. The artificial intelligence-driven forecasting technology, 3D design, and blockchain-based transparency are among the technologies that are pushing fashion towards circularity and sustainability. Building on this historical journey, it is important to see how fashion contributes to the global economy and why sustainability and technology are now central to its growth.

ECONOMIC CONTRIBUTIONS ( GLOBALLY)

Sustainable fashion and technology are no longer niche experiments; they are now being worked on a global level. It is growing with the help of technological transformations, innovations such as digital design, AI-powered trend forecasting, virtual fitting rooms, smart fabrics, and
blockchain for transparency are not just trends, they are essential pillars of modern competitiveness. They are cutting the costs of manufacturing the goods, reducing the waste and leading to a positive change.

Globally, the fashion industry is valued at around $1.7 trillion. It supports more than 300 million people worldwide across design, manufacturing, retail, and related services. At the same time the industry is responsible for nearly 10% of global carbon emissions and 20% of global
wastewater (1) London Fashion Week, through the British Fashion Council, will require all participating brands to have ESG strategies, preferred materials, and no single-use props by January 2026. Following the ESG strategies, reducing the carbon footprint has become the baseline of the investments worldwide and also leads to higher consumer trust since all the consumers are well aware of these practices and are keen for regulation in countries. While these trends highlight fashion’s global impact, India holds a unique place in this story as one of the largest textile producers and a rising hub for fashion technology and sustainability.

ECONOMIC CONTRIBUTIONS (INDIA)

One of the largest clothing and textile manufacturers in the world is India. The industry has a contribution of approximately 2 per cent to the GDP and 12 per cent of the total exports in India. More to the point, it offers employment to more than 45 million individuals directly and to
approximately 100 million through indirect means, thereby ranking as the second-largest employer in the country, second only to agriculture. (2)
India is becoming a high-growth market in terms of the implementation of fashion tech. The consideration of investments in sustainable fashion practices is becoming more of a strategic benefit to the brand's resilience, brand loyalty, and an increased pool of consumers. The sector
that supports the Indian economy is the textile industry, which has 45 million employees and results in the biggest industrial production.

The industry is bullish, rapidly growing with an increase in the market share in the economy. Digital fashion and NFT-driven apparel are the accelerating frontiers of India’s fashion technology market, opening up new streams of value in virtual goods providing consumers with
an exceptional experience. At the same time, India holds a strong position in sustainable consumption trends with the dominance of fast fashion still commanding around 14% of the clothing market, and is rapidly growing. Beyond its economic weight, India’s fashion sector is part of a larger global ecosystem, and understanding the overall industry structure gives a clearer view of how different segments drive change.

Industry Overview

Product & Material Mix

The fashion industry is one of the most influential industries in the world, a special combinationof art, trade, and technology. It is not just about clothes but a whole ecosystem which involves clothes, clothing, shoes, luxury, accessories, and now even digital clothes. Every item to enter
this ecosystem begins with materials, and the selection of those materials has always dictated the narrative of fashion.
 

Natural materials: Clothes were produced using cotton, silk, wool, jute, and linen over countless centuries. Cotton specifically has influenced world business and culture from hand-woven khadi in India to denim jeans. Nevertheless, cotton is also a water-consuming crop: it
takes up to 2,700 liters of water to make a single cotton shirt.
Synthetic fibres: Polyester, nylon, and acrylic were introduced during the 20th century. These fibres revolutionised fashion because they made clothing cheaper, stretchier, and much easier to wear. Polyester is presently the most popular fibre in the world, with it constituting more than
50% of all textiles in the world. But there is a downside to it: each wash contaminates rivers and oceans with microplastics. 

Eco-friendly options: As the climate-related issues become more significant, the sector tries out more eco-friendly materials. Organic cotton does not contain dangerous pesticides, hemp does not demand much water, and bamboo is biodegradable. Plastic bottles can be recycled into polyester to provide a second life to the waste. The most interesting ones are those in biomaterials: mushroom leather ( Mylo ), cactus leather, and pineapple fibre ( Pinatex ) are coming up as the representatives of the future of leather and synthetics.

Economic Contribution of the Industry


Fashion is culture, not to mention it is an economic powerhouse that drives up growth, trade, and
livelihoods.

Global level: Fashion is one of the biggest consumer markets, with a value of 1.7 trillion. It has over 300 million employees; thus, it is an important source of revenue in developing countries where apparel exports rule. It also promotes neighbouring industries: agriculture (cotton farming),
chemicals (dyes), energy (factories), and logistics (shipping and retail).
 

The influence of India: India is one of the largest producers of textiles and apparel in the world. The industry is estimated to contribute 2 per cent of GDP and 12 per cent of exports. More to the point, it directly employs 45 million people and indirectly sustains the livelihoods of another 100 million. This qualifies it to be the second-largest employer after agriculture.


Fashion in India is also a way of preserving culture, other than numbers. The handloom industry, khadi, and crafts such as embroideries and block prints preserve the traditional knowledge and earn international attention that the sector is sustainable.
 

A two-edged sword: Fashion brings in revenue, though it is also associated with waste, pollution, and poor labour conditions in most parts. This two-sidedness has brought economic growth to the brink with regard to the necessity of responsible models of production.
 

With this broad view of the industry, it becomes easier to dive into its key segments, each shaping fashion’s evolution in unique ways, from raw materials to digital innovation.

Key Segments of the Fashion Industry


Fashion is not an individual industry. It is a patchwork quilt that is sewn up of numerous segments of raw fibre, finished garments, footwear, accessories, and now even clothing that exists only on the internet. The segments have their story to tell, and when combined, they show how fashion is evolving between a heritage and high-tech, between the loom and the metaverse.


1. Textiles and Raw Materials - The Starting Place of All Stories.
Fashion is always a matter of beginning with a fibre. These were natural fibres dating back centuries: cotton, silk, wool, jute, and linen. Cotton grew
to be the mightiest of all soft, versatile, and woven into all that the handloom khadi of India, to the jeans now in our denim cottages, is made of. Cotton is not without its hardships: it requires 2,700 litres of water to make one cotton shirt.


Then came synthetic fibres. The 20th century was redesigned with the use of polyester and nylon, which enabled the clothes to be inexpensive, stretchy, and easy to clean. More than half of all the fabric in the world is today made of polyester alone. However, when we wash a polyester
Garments, microplastics leak into rivers and oceans every time, teaching us about the costs of convenience that we do not experience.


A new chapter is now being written with sustainability alternatives. Mainstream production is underway with organic cotton, hemp, bamboo, and recycled polyester. Even innovators develop futuristic materials, such as mushroom leather (Mylo), cactus leather (Desserto), and pineapple
fibre (Pinatex) materials that not only look good, but are also good for the planet.

2. Apparel - The Face of Fashion
Whenever the majority considers fashion, the first thing that crosses their mind is clothing. This is the most conspicuous part, and it has numerous faces. 

There is the world of everyday clothes, utilitarian and necessitarian. Next comes fast fashion, which is characterized by cheap, trendy clothes that are manufactured at an extremely high pace and thus not only popular but also one of the most polluting ones. Luxury fashion is at the other end and where craftsmanship, exclusivity, and heritage take precedence over the price tags. In the middle of it all is sportswear and activewear,
which is one of the most rapidly developing markets, with brands such as Adidas and Nike experimenting with recycled fabrics and even 3D-printed shoes.

All these categories influence the way people express themselves but nowadays, all these categories are being forced to embrace more sustainable practices.

3. Shoes and Accessories - Going the Extra Mile.
The accessories (shoes, bags, belts, jewellery, etc.) might appear as secondary characters in the story of fashion, but they make up a huge portion of it. 

Leather shoes and handbags have been a classic over the decades and have been associated with longevity and status. Leather, however, is a resource-intensive material, and this makes designers seek out vegan alternatives. Nowadays, brands are trying the use cactus leather shoes or mushroom leather handbags. Adidas even developed sneakers that used recycled ocean plastics and demonstrated how creativity can transform garbage into design.
Also in accessories, jewellery companies are substituting mined diamonds with lab-grown and recycled metals are gaining popularity with environmentally-conscious buyers. Responsible luxury is gradually replacing what has been luxury.

4. Circular and sustainable Fashion - Sealing the Loop.
It is making a new story in which fashion does not go to a landfill. Second-hand clothing is trending in resale markets such as Depop, ThredUp, and Poshmark. Gen Z thrift stores on Instagram are redefining shopping behaviour in India. The Rental fashion companies like Rent the Runway enable individuals to use designer outfits without possessing them. And startups such as Doodlage are transforming textile waste into fashionable clothes, which demonstrates that scraps can be cool. 

There is also an increase in recycling centres into which old clothes are shredded, sorted, and
spun back into wool to make new clothes. The fashion world is the centre of the circular economy (where fashion is reused, repaired, and reimagined, rather than wasted).

5. Digital Fashion - The New Frontier.
The new chapter in fashion is one that does not even exist in the closets. 

Digital fashion refers to clothing that has its life in cyberspace. Individuals purchase virtual clothing for avatars in a game, on social media, or in the metaverse. NFT fashion lines by big luxury brands such as Dolce & Gabbana have already been issued, and Indian startups are also considering AR filters that allow the shopper to have outfits superimposed on themselves without having to touch the clothes.
 

This is not futuristic fun; it is a solution as well. Digital-only fashions help a brand to cut overproduction, waste, and provide consumers with the excitement of wearing something new.
Looking at these segments together also raises an important question: how big is the fashion market today, and how fast is it growing, especially with sustainability at its core?

MARKET SIZE AND GROWTH


India’s fashion industry is entering a new era. Once dominated by fast fashion and synthetic fibres, it is now steadily pivoting toward sustainability. By 2025, the sustainable fashion market is expected to cross USD 9 billion, nearly doubling from its early 2020s base. If momentum continues, it could reach USD 15–16 billion by 2030 and as much as USD 25–30 billion by the mid-2030s. And with that, it is seen that it is a bullish industry, growing very rapidly with the help of innovation and tech, where sustainability meets both ends.

 This growth is being driven by shifting consumer values, especially among Gen Z and millennials, who see fashion as an expression of conscience as much as style. Nowadays, they believe it is important to give back to the environment and bring the change that is highly required and essential for the environment.

 Apparel views | TOMO SOLUTIONS PVT LTD Government initiatives, from PLI schemes to integrated textile parks, alongside India’s energy transition, are creating the infrastructure for greener production and which is also adopting sustainable practices. In the decade ahead, sustainable fashion could move from niche to mainstream, potentially making up one in four garments sold by 2035 looking From a global view, higher investments and higher market share are made in this industry, and will continue to look like STAR. This is not just market growth; it is the re-imagining of an industry around culture, commerce, and consciousness, and hence potentially leading to higher profits.
 

Growth drivers :


Infrastructure: Mega textile parks with ETPs, CFCs, and modern logistics enable scale. Cleaner dye houses, bio-dyes, and green warehousing cut waste and carbon footprints. All these steps are taken by the private and public firms to make a strong and cleaner foundation for the economy.
 

Energy Transition: Rapid renewable deployment lowers the grid’s carbon intensity. Solar thermal dyeing, waste-heat recovery, and efficiency upgrades shield firms from volatile fossil costs. Innovation in these areas not only provides better outcomes but is also safer for the
environment.
Innovation & Technology: New frontiers include plant-based leathers, regenerated nylon, bio-dyes, and circular models like upcycling, rentals, and zero-waste design. Blockchain traceability and AI forecasting further sharpen competitiveness. With the use of which there is higher
operational efficiency and effectiveness, leading to higher productivity. 

Consumer Shifts: Gen Z and millennials increasingly equate fashion with ethics. Social media amplifies this, making sustainability part of brand identity rather than a niche premium. Today's consumer is inclined towards safe choices and is increasingly investing
 

Global Standards: As fashion becomes more global, export markets are raising the bar on sustainability. Buyers and regulators now expect
brands to meet Environmental, Social, and Governance (ESG) requirements, ensure full supply chain traceability, and comply with stricter chemical safety norms. This means companies must prove not only that their materials are responsibly sourced, but also that their production processes are safe for workers, consumers, and the environment.
 

All these growth drivers, projections, and rising global standards paint a picture of an industry
that is quickly redefining itself for a more responsible future.


Projections beyond ‘25


● If all growth drivers align, sustainable fashion could shift from being a premium, niche market toward becoming part of mainstream fashion supply chains in India. By 2030, sustainable/ethical lines could compose 20-30% of certain product categories (e.g.,
premium western wear, athleisure, accessories).

● By 2033-2035, technologies such as bio-leathers may achieve cost parity (or near parity) with conventional PU or animal leather, particularly if local feedstocks (cactus, mushrooms, pineapple leaves) are industrialised.

● Regulatory tightening (e.g., limits on microplastics, synthetic chemical discharge) may force faster adoption of alternative materials and more circular design. These rules and regulations reduce the carbon footprint in the economy.

● Export markets (EU, UK, US) may demand higher levels of certification and traceability; Brands that proactively integrate will gain a competitive advantage.


To understand this growth more clearly, it helps to break the fashion industry down into segments, each with its own materials, challenges, and
opportunities.

MARKET SEGMENTATION

The fashion industry is not a single stream but a collection of interconnected segments. Each has its own materials, challenges, and opportunities.

Textiles and raw materials

Natural: cotton, silk, wool, linen, jute, known for comfort but resource-heavy. Use of organiccotton grown without harmful pesticides or fertilizers. But the use of the materials below leads to a reduction in carbon emissions and hence is friendly.


1. Organic cotton is grown without synthetic pesticides and fertilizers, or GMOs. They are eco-friendly, use less water, and protect the soil and the biodiversity, which is also safer for the farmers and the local communities. Certifications such as the Global Organic Textile Standard and, organic content standard are used by industries before purchasing the cotton.
2. Hemp: it is basically the stalks of the hemp plants and grows quickly without pesticides and herbicides, requires really less water, and is naturally resistant to pests. It is similar to linen and softens with wear and washing. Used in manufacturing t-shirts, bags, and denim.

3. Linen: it is revived from the stalks of the flax plant, it is fully biodegradable, requires less water and chemicals than cotton, which is really liked by consumers as it is durable and breathable.
4. Bamboo: It is sourced from the bamboo plants and is sustainable when processed mechanically. It is fast-growing and naturally pest-resistant, which can be grown without fertilizers.
5. Wool, sourced from the fleece of the sheep, is renewable, biodegradable, and is used in sweaters, coats, and socks. certifications like the Responsible Wool Standard are highly taken into account. Ethical concerns include animal welfare, land use, and overgrazing.

Innovative alternators:


1. Mushroom Leather (Mylo™)
Origin: Crafted from mycelium, the intricate root network of fungi.
Adopted by: Stella McCartney, Adidas, and Lululemon companies have been using these.
 

Advantages:
● Entirely biodegradable with a markedly low environmental footprint.

● Cultivated in a matter of days under carbon-neutral, carefully controlled conditions.

● Closely replicates the texture, strength, and
aesthetic of animal leather.

Challenges:

● Still confined to limited-scale production and not yet ready for mass adoption.

● Durability often relies on a thin polyurethane finish, which diminishes its
biodegradability.

2. Cactus Leather (Desserto®)
Origin: Derived from the resilient nopal cactus, cultivated in Mexico’s arid landscapes.
Adopted by: Karl Lagerfeld, Fossil, H&M Conscious.
 

Advantages:
● Thrives on natural rainfall, requiring no irrigation systems.

● Cultivation is chemical-free, with no pesticides or herbicides.

● Offers flexibility and resilience, while being partially biodegradable.

Challenges:
● Reinforced with a polyurethane coating to enhance strength.

● As a result, it is not entirely biodegradable.

3. Pineapple Fiber (Piñatex®)
Origin: Extracted from pineapple leaf waste, a byproduct of the fruit industry.

Adopted by: Hugo Boss, H&M, Nike, Hilton Hotels (upholstery).
 

Advantages:
● Repurposes agricultural residue, requiring no additional land, water, or inputs.

● Possesses a biodegradable base with a supple, leather-like texture.

● Generates supplementary income for farming communities in the Philippines.

Challenges:
● Requires resins or protective coatings, often petroleum-derived, for structural integrity.

● Comparatively less durable than animal leather or advanced synthetics.

Synthetic:  polyester, nylon, acrylic, cheap and durable, but highly polluting. They are man- made fibres derived from petrochemicals, and they dominate the global market due to their low cost and durability.
1. Polyester is derived from petroleum (plastic-based), and it is widely used in fast fashion. It is inexpensive and readily available, durable and wrinkle-resistant, but cons include non-biodegradable, microplastic pollution as it sheds the microfibres when washed and
pollutes.
2. Nylon is petroleum-based, strong, elastic, and abrasion-resistant. The sustainable alternative includes ECONYL®: Regenerated nylon made from fishing nets and industrial plastic.

BY GEOGRAPHY

Cotton: India is the world’s largest producer of cotton, particularly concentrated in Gujarat, Maharashtra, and Telangana. Organic cotton grown without synthetic pesticides, fertilisers, or GMOs is gaining momentum, especially in Madhya Pradesh and Odisha. These areas are highly
manufacturers of cotton.
Hemp: Though historically underutilised, hemp cultivation is finding renewed interest in the Himalayan belt, particularly in Uttarakhand. The crop flourishes with minimal water, grows rapidly without pesticides, and is naturally pest-resistant.
Linen: Flax cultivation, though limited, is slowly being encouraged in the temperate regions of India. Linen is fully biodegradable and requires less water and fewer agrochemicals than cotton.
Bamboo: North-East India, especially Assam and Tripura, is rich in bamboo. When processed mechanically rather than chemically, bamboo becomes a sustainable fibre, fast-growing, naturally pest-resistant, and requiring no fertilisers.
Wool: India’s wool is primarily sourced from Rajasthan, Jammu & Kashmir, and Himachal Pradesh. From fine Pashmina shawls in Kashmir to sturdy sheep wool in the Thar Desert, the diversity is remarkable. While renewable and biodegradable, ethical issues such as animal Welfare and overgrazing are pressing concerns.
Polyester: Derived from petroleum, polyester is widely produced in Gujarat and Maharashtra. It is inexpensive, durable, and wrinkle-resistant, which
explains its dominance.
Mushroom Leather (Mylo™): While largely pioneered in the West, Indian researchers and startups are beginning to explore fungi-based materials due to the country’s biodiversity-rich landscapes.

Cactus Leather (Desserto®): Mexico remains the origin, but similar opportunities exist in India’s arid zones like Rajasthan, where resilient desert flora could inspire regional variants.

Pineapple Fibre (Piñatex®): Particularly promising in India’s pineapple-rich North-Eastern states such as Meghalaya and Tripura.

BY STAKEHOLDERS


1. Brands/manufacturers should invest now in upstream sustainability: sourcing, material innovation, and traceability. Getting ahead of regulatory compliance can be a strategic advantage.

2. Policymakers should continue to refine incentives (PLI, subsidies, tax breaks), enforce environmental/social standards, support infrastructure (textile parks, green logistics), and facilitate certification systems.

3. Investors/innovators have opportunities in circular design, material R&D (plant leathers, bio-fibres), alternative dyeing/finishing, digital tools for inventory forecasting, and in consumer education / brand-building. 

With the roles of different stakeholders clear, it becomes easier to see where the biggest opportunities lie for shaping the future of fashion.

MARKET OPPORTUNITES

The fashion industry is at a crossroads. For years, it was driven by speed, volume, and trends, but today the real growth opportunities lie in becoming smarter, greener, and more innovative.
 

Three areas stand out as the biggest openings for brands, startups, and investors.
1. Sustainability Trends
A silent revolution is happening in closets around the world. Shoppers, especially millennials and Gen Z, are asking hard questions: Who made my clothes? What fabric is this? How long will it last?
This has given rise to a wave of opportunities: 

Resale platforms like ThredUp, Depop, and Poshmark are projected to outgrow fast fashion in the next decade. In India, Instagram thrift stores are booming among Gen Z. 

Rental fashion is gaining momentum with services such as Rent the Runway in the US and Stage3 in India, where consumers borrow designer clothes instead of buying them.

 Repair and upcycling are turning into business models. Patagonia offers in-store garment repairs, while India’s Doodlage creates premium apparel out of textile waste.

2. Technology
Technology is reshaping how clothes are designed, produced, and even worn. AI and machine learning can forecast demand with high accuracy, helping brands avoid overproduction, one of the industry’s biggest problems. 3D design tools let designers create virtual samples, cutting waste from multiple physical prototypes.

Companies like CLO3D and Browzwear are leading this space.
Augmented Reality (AR) try-ons are transforming online shopping by letting customers “try”
clothes through their phones before buying, reducing return rates.
Blockchain is bringing radical transparency by recording every step of a garment’s journey,
from cotton field to retail shelf. This not only prevents counterfeiting but also reassures
consumers about ethical sourcing.

3. Innovation
Perhaps the most exciting opportunities come from innovation, completely rethinking what
fashion is made of and how it is consumed.
Next-gen materials: Mushroom leather (Mylo), cactus leather (Desserto), and pineapple fiber (Piñatex) are moving from experimental labs to commercial production. Brands like Adidas, H&M, and Stella McCartney are already showcasing these materials in global collections.
Circular business models: Beyond resale and rental, new models such as “buy-back programs” (where brands take back old clothes to recycle into new ones) are growing fast. Levi’s and H&M are piloting such initiatives.
Digital fashion: Virtual garments, NFTs, and metaverse-based clothing are creating an entirely new industry. In 2021, a digital-only dress sold for over $9,000, proving that people are willing to invest in fashion that doesn’t physically exist. Exploring these opportunities also means looking at the wider environment in which fashion operates, and a PESTLE view helps capture these external factors clearly.

PESTLE ANALYSIS OF THE FASHION INDUSTRY

POLITICAL

Government policies and national strategies are increasingly steering textiles towards circularity and sustainability with innovation. The Ministry of Textiles and other related bodies are aligning industrial policy with the resources of the nation, working on sustainable manufacturing clusters, waste management investment.

Schemes such as “Make In India” have increased production and manufacturing in the country and, with that, stimulated local, sustainable value chains (such as handloom, khadi, and also organic cotton).

Creation of more opportunities for the recycling sector and the ERP service provider in India, directly aligning with employment opportunities.

 

ECONOMICS

 The fashion industry is a major economic pillar of the country, driving employment, rising exports, and industrial output. The apparel market is expanding rapidly, forecast to be a much larger market by 2030-2032.

Sustainable practices open new revenue pools (resale, rental, repair services, recycled inputs, digital/virtual fashion). Circularity investments unlock considerable domestic value while creating green jobs in the economy. They unlock INR 30,000 crore with 10k+ jobs.
Adoption costs (certification, traceability systems, renewable energy) create short-term margin pressure, but long-term resilience against regulatory and market risks.

 

SOCIAL

 Consumer awareness is keen, especially among urban millennials and Gen-Z, shifting the demand toward traceability and lowering the environmental footprints. A rise in the indigenous crafts and counter movement to mass fast fashion, use of heritage materials and design, lowering the wastes and carbon emissions, and sustaining the fast fashion growth. Today, worker welfare, non-biased employment in the garment clusters, and other important factors for investors while investing.

Example: Raw Mango, Anavila, Eka, Nor Black Nor White designers/labels that fuse artisanal crafts (handloom, linen, khadi) with modern markets, preserving artisan livelihoods while commanding premium pricing and a range of designs.

 

TECHNOLOGICAL

Technology is accelerating and is ever-changing. With AI, demand sensing, 3D, innovations in dyeing, fashion tech is the fastest growing frontier, with the adoption of these, there was a reduction in inventory risks, carbon intensity, but it requires capital, skills, and change management.

Adoption of AI forecasting, digital printing reduces the sampling cycles in the fashion tech adoption.

 

LEGAL

 The regulatory landscape is evolving, with environmental regulations on the use of materials, waste management rules, and labor compliance. These are the mandatory disclosures that will raise the minimum standards.

  The Environment (Protection) Act, 1986, along with the Water & Air Acts, governs pollution control in the dyeing, printing, and tanning sectors. Factories must obtain permissions from State Pollution Control Boards and adhere to hazardous-waste and plastic-waste rules.

The Factories Act, 1948 (now covered under the Occupational Safety, Health and Working Conditions 

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