India’s textile sector is a major driver of employment, industrial production, and exports, but it is also highly energy- and resource-intensive. The report focuses on the Bhilwara textile cluster in Rajasthan, where outdated machinery, high energy consumption, pollution, unreliable power supply, and limited access to finance continue to constrain MSMEs and weaken global competitiveness.
The report highlights a decarbonization pilot initiative launched by Swaniti Global and Laghu Udyog Bharati to support textile MSMEs in adopting cleaner and more energy-efficient technologies. A key component is the Energy Transition Index (ETI), designed to measure sustainability performance and transition readiness. The report identifies practical technology pathways such as Waste Heat Recovery Systems (WHR), solar integration, steam optimization, Variable Frequency Drives (VFDs), and water recycling systems, many of which offer significant cost savings and short payback periods.
The report also reviews policy and financing support available through schemes such as MSME-RAMP, RIPS 2024, and the Rajasthan MSME Policy 2024, which provide subsidies and incentives for clean technology adoption. Through the example of Manomay Tex India Limited, the report shows that investments in sustainability can improve operational efficiency, reduce costs, and strengthen long-term competitiveness.
