Textile industry knits business with artificial intelligence (AI) as companies adopt technology

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.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.