Tamil Nadu's Textile Sector Could Save ₹3,250 Crore Annually by Embracing Renewable Energy
T.N.’s textile industry can save over ₹3,000 cr. by transitioning to renewable energy: report

Image: The Hindu
A report by Climate Risk Horizons reveals that Tamil Nadu's textile industry can save between ₹1,560 crore and ₹3,250 crore annually by transitioning to renewable energy. This shift is crucial for enhancing cost competitiveness and reducing emissions in a sector facing rising production costs.
- 01Tamil Nadu's textile sector could save ₹2,320 crore to ₹3,250 crore annually by switching to 100% renewable energy.
- 02The industry's energy expenditure has nearly doubled in the last four years, impacting competitiveness.
- 03India's textile industry has the highest carbon footprint among major exporting nations, exceeding 12.5 kg CO2e per kg of textile.
- 04Transitioning to renewable energy can improve cost competitiveness and reduce emissions in the textile sector.
- 05Global brands must support large-scale electrification and policy reforms to accelerate decarbonisation in Tamil Nadu.
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According to a report by Bengaluru-based Climate Risk Horizons, Tamil Nadu's textile industry stands to save between ₹1,560 crore and ₹3,250 crore annually by shifting to renewable energy. The report highlights that rising fuel and energy costs are undermining the competitiveness of the sector, which has seen exports plateau at approximately $7.4 billion since 2017. The total energy expenditure in the textile sector has nearly doubled over the past four years, leading to increased fuel cost intensity. The report emphasizes that India’s textile industry has the highest carbon footprint among major exporting countries, with emissions exceeding 12.5 kg CO2e per kg of textile. Transitioning to renewable energy-powered electric heating is seen as a viable solution to enhance cost competitiveness while simultaneously reducing emissions. The report calls for global brands to facilitate large-scale electrification of heat processes and for the Tamil Nadu government to promote renewable energy deployment, particularly among micro, small, and medium enterprises (MSMEs), to bolster economic growth and employment.
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Transitioning to renewable energy can significantly reduce costs for textile manufacturers, enhancing their competitiveness in the global market.
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