COP30 in Belém has pushed the global conversation into a new gear. Forests, land-use and supply-chain transparency are now firmly at the centre of climate ambition. The summit made clear that how countries source the raw materials behind everyday products, from pulp to packaging to textiles, will increasingly shape climate credibility and market access. And for India, this shift arrives at a moment when the textile sector is becoming more central than ever to the country’s growth story.
Textiles are not just another manufacturing sector in India; they are integral to the country’s development aspirations. Prime Minister Narendra Modi has repeatedly described textiles as a major pillar of Make in India and essential to India’s rise as a global manufacturing hub. His articulation during the India Textiles Global Conclave and the PM MITRA launch was unambiguous: India must lead in man-made fibres and technical textiles to build a future-ready industry aligned with the vision of Viksit Bharat 2047.
The numbers reflect that momentum. India’s textile and apparel industry is valued at $ 165 billion in 2022 and is projected to more than double to $ 350 billion by 2030. Man-made fibres (MMF) now anchor much of this expansion. Worldwide, MMF accounts for nearly 70% of all fibre consumption, and in India, demand has been rising at 7-8% annually, driven by shifts in fashion, affordability and performance needs. MMF exports totalled $ 422.0 million in July 2025, up from $ 405.6 million last year (4.05% growth), underscoring their importance to India’s export competitiveness.
But COP30 has shed new light on an underlying vulnerability in India’s raw-material base. A substantial share of India’s viscose staple fibre (VSF) demand is met through imports, mainly from Indonesia, one of the world’s largest producers of dissolving-grade wood pulp (DGWP) and VSF. Indonesia has lost more than 30 million hectares of forest since 2001, much of it in peat-rich landscapes that play a vital role in global carbon cycles. Meanwhile, Indonesia’s DGWP capacity has expanded from about 180,000 tonnes in 2015 to nearly 2 million tonnes in 2024, a scale of growth that has intensified scrutiny of land-use practices.
As global regulations tighten, through frameworks such as the EU Deforestation-Free Products Regulation (EUDR), the UK Environment Act, and the strengthened US Lacey Act, fibre producers linked to forest-risk regions are facing increasing barriers to western markets. International fashion brands are also reconfiguring procurement around traceability, incorporating tools like Canopy’s Hot Button rankings and certifications such as FSC and PEFC.
This shift is redirecting forest-risk inputs toward markets with lower screening, and India has emerged as a significant destination. After the removal of anti-dumping duty in 2021, VSF imports from Indonesia rose sharply. Public trade data indicates that in 2022, India imported over 93 million kg of viscose fibre, with Indonesia accounting for nearly 30% of the volume. Another estimate suggests the import value almost doubled from ₹1,058 crore to ₹2,033 crore between FY22 and FY23. Under the India-ASEAN FTA, Indonesian VSF enters India at zero duty, while domestic manufacturers importing FSC-certified pulp from Sweden, Canada or Brazil pay duties of about 2.75%. This inversion makes imported VSF more price-competitive, even when the certification status of incoming fibre varies widely.
India does not currently track whether its fibre imports meet internationally recognized traceability or sustainability standards. As global frameworks such as the Tropical Forest Forever Facility (TFFF), now central to forest-risk and COP30 discussions, define credible criteria for deforestation-free, low-risk fibre, this data gap allows uncertified material to enter the value chain unnoticed. The result is a growing misalignment: as India advances climate-conscious development, the textile ministry’s Roadmap 2047, and the LiFE movement’s push for responsible consumption, parts of the fibre system may still rely on inputs with unknown environmental attributes. The question is increasingly one of strategic preparedness. Can India position itself as a global hub for sustainable MMF-based textiles if elements of its raw material mix may not align with emerging global expectations?
Exporters serving premium markets will face rising due diligence requirements. Countries are developing border controls to filter out high-risk materials. Brands are insisting on verifiable low-risk inputs. In this environment, Indian manufacturers who invest in cleaner technologies or certified pulp may find themselves at a competitive disadvantage compared to those relying on cheaper, uncertified imports. This tension could eventually weaken India’s sustainability-led growth trajectory.
But the global shift also presents an opportunity for India to define a forward-looking, distinctive approach, one that strengthens competitiveness, enhances market resilience and aligns with Viksit Bharat 2047.
A practical starting point is a risk-based screening framework for wood-based fibre imports, tailored to India’s industrial needs and focused on traceability, legality and sustainability indicators. Such an approach would allow India to identify high-risk inflows without disrupting legitimate trade. India could also develop a national traceability pathway for pulp- and wood-based textile inputs, crafted in partnership with the private sector and industry. This would help manufacturers credibly demonstrate low-risk sourcing, giving Indian exporters an edge as global requirements evolve. In addition, a review of the inverted duty structure would help ensure that certified, responsibly sourced inputs are not disadvantaged, aligning tariff signals with India’s sustainability and export goals.
Clean, traceable supply chains are becoming a global expectation, and COP30 underscores the accelerating shift toward forest-safe production. For India, this is a strategic economic choice: such systems enhance export resilience, attract higher-value investment and strengthen the country’s credibility as a trusted manufacturing hub.
