The textile industry in India is a force to be reckoned with globally, but it has some major environmental challenges like water pollution. Textile production requires sustainability, focusing on water recycling, cleaner industrial processes, and improved labour standards to avoid negative consequences. In order to enhance the avenues for industries to shift towards sustainability, it is important that the municipal laws align with the international frameworks, especially in their application. Government backing and CSR investments are indispensable to encourage the adoption of eco-friendly practices. The sustainability of the textile sector will not be possible without cooperation among stakeholders.