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Textile industry knits business with AI

Business Standard

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June 23, 2025

Companies adopt tech for work as varied as design and supplies, amid a demand recovery seen after years, reports Shine Jacob

- Shine Jacob

Textile industry knits business with AI

India's skills in textiles date back to the Indus Valley civilization, which engaged in advanced textile production, notably through its early cultivation and use of cotton. Today, this ancient industry, dominated by small enterprises, is undergoing a transformation by adopting artificial intelligence (AI).

Micro, small, and medium enterprises (MSMEs) are assumed to be slow in adopting technology, but textile hubs like Tiruppur in Tamil Nadu are using AI to revolutionize every stage of manufacturing—from designing and sewing to sorting—as part of a concept called Industry 4.0. AI has helped Tiruppur improve production by at least 10 percent, as orders return to a region that contributes 55 percent of the country's total knitwear exports. The AI transition is happening across the entire value chain, from logistics to spinning mills.

Small business leads As computer-aided design and manufacturing (CAD and CAM) machines become the norm in MSMEs, they are helping minimize materials used for products. Industry players said that due to losses of over 10 years due to Covid-19 and dwindling demand, textile clusters like Tiruppur shied away from modernization. However, FY25 became a game changer for the industry as knitwear exports from Tiruppur crossed 40,000 crore in value for the first time in history.

Favorable international events like a free trade agreement with the United Kingdom, increased orders from the United States as it follows the so-called China Plus One strategy, and Bangladesh's political turmoil have helped the region where new factories are coming up and older ones are modernizing, according to the Tiruppur Exporters' Association (TEA).

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