Artificial intelligence
promises better quality, higher productivity and less waste across the textile
value chain. But fragmented data, skills shortages and high investment costs
are slowing adoption. For India’s textile industry, the challenge is not whether
to embrace AI, but how quickly it can build the capabilities to use it.
Artificial intelligence
(AI) is moving into textile manufacturing, promising to transform everything
from fabric inspection and predictive maintenance to production planning,
energy management and supply chain traceability. The technology is advancing rapidly,
and the commercial opportunity is growing just as fast.
The global AI in textile
market is estimated at US$ 5.54 billion in 2026, and is expected to reach US$ 17.65
billion by 2030, according to a forecast by The Business Research Company. The
report estimates a compound annual growth rate of 33.6% through 2030.
Asia-Pacific was the largest regional market in 2025, while North America is
expected to record the fastest growth over the forecast period.
These figures point to a
market gathering momentum. Textile manufacturers will have to figure out how
effectively they can put AI to work on the factory floor.
Like automation and
digitalisation, AI can improve overall efficiencies in textile production and
planning. AI can identify defects, anticipate machine failures, optimise energy
consumption and improve demand forecasting. It can help manufacturers make
faster decisions and reduce costly production errors.
The industry is, however, discovering
that buying the technology is often the easiest part. Getting it to deliver
measurable results is considerably harder.
A new white paper from the
International Textile Manufacturers Federation (ITMF) and the Institut für
Textiltechnik of RWTH Aachen University (ITA) puts the problem into
perspective. Its central finding is that the biggest barriers to AI adoption
are not shortcomings in algorithms. They are poor data integration, a shortage
of skilled people and gaps in governance.
In other words, the textile
industry may have plenty of digital information, but it is not necessarily
equipped to use it intelligently.
The industry is digitally
fragmented
The ITMF–ITA white paper, AI
in the Textile Value Chain: A Strategic Guide to Artificial Intelligence for
the Global Textile Industry, draws on ten webinars conducted between 2024
and 2026, involving more than 20 experts from companies, research institutions
and policy bodies. It also incorporates discussions with industry practitioners
at the ITMF Conference 2025 in Yogyakarta.
The paper describes the
textile industry as “not under-digitalized, but digitally fragmented”. Decades
of digitalisation have generated substantial amounts of data, but much of it
remains scattered across disconnected systems. Information may be available
within individual machines, departments or business functions without being
accessible in a form that allows the entire operation to benefit.
This is a fundamental
problem. AI does not automatically repair poor data. It can amplify its
weaknesses. If information is incomplete, inconsistent or inaccessible, the
output of even sophisticated systems can be unreliable.
The industry already has
practical applications where AI is delivering results. Computer vision is being
used for fabric and yarn inspection, while predictive maintenance can identify
the likelihood of equipment failure before a breakdown occurs. AI-based energy
optimisation and demand forecasting can also improve operational efficiency.
One example cited in the
ITMF–ITA paper is a nonwovens production line where causal AI reduced scrap by
10%. This is the kind of measurable gain that makes AI commercially relevant:
less waste, better process control and improved use of resources.
The technology is also
beginning to move beyond providing recommendations. Agentic AI systems are
being developed to coordinate multi-step activities such as sourcing, while
causal AI can adjust production settings directly, subject to human
supervision. The paper estimates that end-to-end AI workflows could become
realistic within two to three years.
But the transition requires
more than technology. Manufacturers need to establish control over sensitive
data, strengthen cybersecurity, understand the limitations of AI systems and
retain human accountability for decisions.
The report recommends that
companies build skills and data capabilities before scaling technology. It also
advocates starting with clearly defined applications rather than attempting a
complete transformation at once. For small and medium-sized enterprises (SMEs),
industry associations could play an important role through shared data
standards, collaborative platforms and sector-specific tools.
India is still at an early
stage
For India’s textile and
apparel industry, the challenge is particularly relevant. The sector has a
large and diverse manufacturing base, with companies operating at very
different levels of digital maturity. While some enterprises are investing in
automation and connected systems, many others are still building basic digital
capabilities.
A study by the
Confederation of Indian Textile Industry (CITI), supported by the Northern
India Textile Research Association (NITRA), provides a useful snapshot. The
study, AI, Automation & Digitalisation Readiness in the Indian Textile
& Apparel Industry, was released at UP TEX 2026 in Lucknow on September
8.
Covering the value chain
from spinning to garmenting, including home textiles, technical textiles and
allied services, the survey found that 35% of firms had not started adopting
AI. More significantly, 38% operated without a digital system, while only around
14% reported having fully integrated digital systems.
Automation adoption was
concentrated mainly in routine applications such as machine monitoring and
setting. More complex functions, including production scheduling, had lower
adoption.
The findings place India in
the “early-to-emerging” stage of AI and digital adoption in textiles and
apparel, with the country continuing to trail China. High investment costs and
shortages of skilled talent were identified as the leading barriers to wider
adoption.
The survey also found that
training remains largely informal and enterprise-led, while technology's impact
on employment is mixed. This points to a gap that cannot be addressed simply by
making more software available. Workers, supervisors, technicians and managers
all need the capabilities to work with increasingly digital production systems.
The CITI study recommends
practical support to help companies, particularly MSMEs, move forward.
Demonstration factories, capital subsidies and common digital platforms emerged
as important priorities. Industry-specific AI tools, Centres of Excellence, training
programmes, pilot projects and financing mechanisms could also help reduce the
risks of adoption.
For smaller manufacturers,
the ability to test a technology before investing in it could make a
significant difference. Shared platforms and sector-level initiatives could
also reduce the cost of building capabilities that individual companies may
struggle to develop on their own.
From factory data to
business performance
The commercial case for AI
is not confined to India. Textile exporters in Bangladesh and Vietnam are also
looking at smart manufacturing as a way to improve productivity, control costs
and meet increasingly demanding buyer requirements.
In Bangladesh, the focus is
on connecting factory challenges with practical technology solutions. The
TIE–ITET Textile Innovation Expo 2026 is part of an initiative by Textile
Innovation Exchange to bring manufacturers and technology providers together through
structured implementation programmes. The objective is to help factory teams
identify bottlenecks, test digital tools under actual shop-floor conditions and
translate technology investments into business results.
The applications being
considered include automated cutting, computer vision, digital dyeing,
predictive maintenance and energy-efficient machinery. Each addresses a
specific manufacturing challenge.
Automated cutting can
reduce fabric waste. Computer vision can identify fabric defects earlier and
help prevent quality problems from travelling further down the production line.
Predictive maintenance can reduce unplanned machine downtime, while digital
dyeing can help control water and chemical consumption.
The potential savings
extend beyond manufacturing. McKinsey and The Business of Fashion have
estimated that digital sourcing tools can reduce fashion sourcing costs by up
to 12%. However, around 90% of fashion companies' AI projects reportedly stall
at the pilot stage, according to McKinsey research.
That gap between
experimentation and implementation is significant. A successful pilot does not
automatically translate into a factory-wide solution. Systems must work with
existing production processes, data must be reliable, and employees must be
trained to use the technology.
A 2026 textile
manufacturing study found that data-driven predictive maintenance increased the
time between machine failures by 38%. This demonstrates the value of connecting
machine data with operational decisions. The gains come not from having more data,
but from using it to anticipate problems and act before production is
disrupted.
Vietnam's experience offers
another perspective. At a conference in Hanoi, industry representatives
stressed that digital transformation must extend beyond investment in machinery
and software. It must also involve changes in management, production organisation
and business practices.
The experience of two
Vietnamese manufacturers illustrates why technology must be accompanied by
process improvements. Garment 10 Corporation recorded a 52% increase in labour
productivity and an 8% reduction in defects after implementing lean manufacturing,
while also cutting working time by one hour per day. At Duc Giang Corporation
and its member companies, productivity increased by 8–10%, while
production-line defect rates fell from 25% to between 10% and 12%.
These results are not
presented as AI-driven gains. Rather, they underline an important point for
manufacturers considering AI: digital technology is more effective when
supported by disciplined production systems, better management and workforce
skills.
Vietnam's textile and
garment exports reached US$ 35.72 billion in the first nine months of 2026, up
3.3% year-on-year. The industry has set a full-year export target of US$ 48–49
billion. Improving productivity and moving towards higher value-added
production are important parts of its competitiveness agenda.
New applications are
emerging in India
While the industry's
readiness remains uneven, Indian companies are beginning to explore AI-based
solutions in different parts of the textile value chain.
One example is the
initiative by RePut.ai, TEXPROCIL and Control Union India to develop an
AI-powered Textile Sustainability Stack. The collaboration aims to create a
unified digital framework to support textile exporters with end-to-end
traceability, Digital Product Passports (DPPs), carbon accounting, ESG
reporting, Extended Producer Responsibility (EPR) compliance and third-party
verification.
The initiative reflects the
growing importance of digital information in international textile trade. As
sustainability and transparency requirements become more demanding, exporters
need reliable information about products, processes and supply chains. A
connected data system could help companies organise this information and
support compliance-related activities.
The proposed platform
brings together TEXPROCIL's industry reach, Control Union's certification and
verification expertise, and RePut.ai's AI-based sustainability platform. It is
intended to help exporters strengthen supply chain transparency and respond to
evolving regulatory requirements, including those in the European Union.
The initiative is still a
development project, rather than evidence of an already established,
industry-wide system. Its significance lies in the attempt to bring multiple
sustainability-related data requirements into one digital framework.
AI is also finding
applications in material selection and product development. Response Fabrics
has announced an AI Fabric Visualizer aimed at making material selection
smarter. While the available information on the tool is limited, it reflects
the broader movement towards using AI to support decisions earlier in the
product development process.
This is an area where AI's
influence extends beyond the factory floor. The Lectra Observatory's latest
white paper, The Intelligence Edge Is Here, examines how AI is changing
fashion product creation, manufacturing, marketing, traceability and
collaboration.
The report brings together
perspectives from experts across the fashion ecosystem, including
representatives from KIKO Milano and C.P. Company, as well as technology and
industry specialists. Its central argument is that AI can support more
connected workflows and faster decision-making, but its effectiveness depends
on the quality and accessibility of the data being used.
For textile and apparel
companies, this means AI could influence several stages of the business:
forecasting what the market may need, developing products, selecting materials,
planning production and managing information across the supply chain. The value
will depend on how well these functions are connected.
Skills must catch up with
technology
One of the biggest gaps in
the Indian industry's AI journey is the availability of people who can work
with new technologies. The CITI–NITRA study identifies the shortage of skilled
talent as a major obstacle, while also pointing to the need for more structured
training.
The All India Council for
Technical Education (AICTE) is expanding its AI and Industry 4.0 skilling
initiatives through its Indovation Centres and the TECHNOVATE Skilling Series,
conducted in collaboration with the Consortium for Technical Education in
Coimbatore.
The programme has conducted
more than 16 hands-on training programmes, benefiting over 850 students and
faculty members from Rajasthan and other north-western states. Its areas of
focus include AI, cybersecurity, robotics and Industry 4.0 applications.
AICTE currently has 11
Indovation Centres across India, aimed at promoting innovation,
entrepreneurship, start-up development and technology transfer in higher
education institutions. It has also signed agreements with JNTU Hyderabad and
Panjab University to establish centres on their campuses. Dedicated skilling
laboratories are being planned at the Jaipur centre, while updated curricula
covering areas such as Textile Engineering, Electrical Engineering, BBA and BCA
are also part of the initiative.
These technical and
professional education programmes point to the importance of building a wider
talent pool with exposure to emerging technologies. The textile industry will
need people who understand both manufacturing processes and digital systems.
That combination is
critical. A data scientist may understand an algorithm, but applying it to a
spinning mill, weaving unit, processing plant or garment factory requires
knowledge of the manufacturing process itself. Similarly, production managers
and shop-floor teams need to understand how data can improve decisions without
disrupting established workflows.
The ITMF–ITA paper makes
the case for investing in people before scaling technology. It also highlights
the importance of trust. Manufacturers must know where their data is stored,
who can access it, how systems make decisions and who remains accountable when
something goes wrong.
These questions will become
more important as AI moves from analysing information to taking action within
production and business processes.
The next step is
implementation
The textile industry's AI
journey is often discussed in terms of sophisticated technologies, robotics and
the prospect of fully automated factories. But the immediate opportunities are
more practical.
A mill does not need to
transform its entire operation overnight. It can begin by addressing a specific
problem: recurring machine failures, inconsistent quality, excessive energy
consumption, fabric wastage or delays in production planning. A well-defined
application, supported by reliable data and trained employees, can provide a
clearer route to measurable returns.
The difficulty is scaling
such applications across departments and production units. This is where
integration becomes crucial. A predictive maintenance system, for example, will
have limited value if machine data cannot be connected to maintenance schedules,
spare-parts availability and production planning.
The same applies to quality
control. Identifying a defect is useful, but the greater benefit comes when the
information can be traced back to the process responsible for it and used to
prevent recurrence.
For India, the opportunity
is substantial, but so is the gap between early adopters and the wider
industry. The CITI–NITRA findings make clear that many companies still need
basic digital systems before they can move towards integrated AI applications.
Smaller enterprises will need access to affordable solutions, financing,
training and opportunities to test technologies.
Industry associations,
research institutions, technology providers and educational institutions will
have to work together to make this transition practical. Shared platforms,
demonstration facilities and industry-specific tools could help bring down costs
and make adoption less intimidating for MSMEs.
AI is unlikely to eliminate
the need for textile manufacturing expertise. If anything, its successful
application will depend on that expertise. The technology can process
information at a scale and speed that people cannot match, but it still needs
to be directed towards the right problems.
The winners will not
necessarily be the companies with the biggest technology budgets or the most
advanced algorithms. They will be the manufacturers and their employees who know
where AI can make a difference, have the data to support it, and can translate
its output into better production decisions.
The race is no longer about
who adopts AI first. It is about who can make it work on the factory floor, and
turn it into a lasting competitive advantage.
AI is unlikely to eliminate the need for textile manufacturing expertise. If anything, its successful application will depend on that expertise. The technology can process information at a scale and speed that people cannot match, but it still needs to be directed towards the right problems. The winners will not necessarily be the companies with the biggest technology budgets or the most advanced algorithms. They will be the manufacturers and their employees who know where AI can make a difference, have the data to support it, and can translate its output into better production decisions.
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