Tamil Nadu’s textile sector can save between ₹1,560 crore-₹3,250 crore annually by transitioning to clean energy, according to a report by Bengaluru-based think tank Climate Risk Horizons.The report, which largely used data from the Annual Survey of Industries (ASI) from the past decade to understand the status and potential for decarbonisation in Tamil Nadu’s textile industry, said transitioning to 100% renewable electricity can save ₹2,320 crore-Rs. 3,250 crore.Cost of production for textiles in Tamil Nadu is rising mainly because of fuel and energy expenses. “Rising fuel costs are one of the reasons for the declining competitiveness of the State’s textiles, the exports of which have plateaued since 2017 at approximately $ 7.4 billion. Our analysis finds that transitioning towards RE can save the industry a lot of money, improving cost competitiveness and revitalising the sector,” said Rakesh Ranjan, co-author of the report.The Tamil Nadu textile sector’s total energy expenditure has nearly doubled in the past four years and the fuel cost intensity (ratio of fuel costs to output) has risen.The report claimed that India’s textile industry has the highest carbon footprint among major exporting countries, reaching over 12.5 kg CO₂e per kg of textile, which is higher than Vietnam, Bangladesh and China.Switching to renewable-powered electric heating can directly strengthen the sector’s cost competitiveness while also lowering emissions, it said.Global brands sourcing from Tamil Nadu and other Indian States must enable large-scale electrification of heat-based processes, reject biomass as a climate solution and drive policy and grid-level reforms needed to accelerate decarbonisation, said Ashish Fernandes, director of Climate Risk Horizons.The State government and the State electricity regulator should facilitate greater renewable energy deployment by the industry, including MSMEs, to boost economic growth and employment, it said. Published - June 05, 2026 08:23 am IST