CITI study finds gaps in AI and digital adoption across India’s textile industry

India’s textile and apparel industry has begun adopting artificial intelligence (AI), automation and digital technologies, but overall readiness remains limited, according to a study by the Confederation of Indian Textile Industry (CITI), supported by the Northern India Textile Research Association (NITRA).

The study, released at UP TEX 2026 in Lucknow, found that 35% of surveyed firms had not started adopting AI, while 38% operated without digital systems. Only around 14% reported fully integrated digital systems. Automation remained concentrated in routine tasks such as machine monitoring and setting, with lower adoption in production scheduling.

High investment costs and shortages of skilled workers were identified as major barriers to technology adoption. The study also highlighted gaps in workforce training and uneven employment impacts. It placed India at an early-to-emerging stage of AI and digital adoption in textiles, behind China, and called for stronger digital capabilities to improve productivity, efficiency and global competitiveness.