What is supply chain transparency and why is it becoming important in Indian textiles?

Supply chain transparency means being able to trace and disclose every stage of a product's journey — from raw fibre to finished garment — and being willing to share that information with buyers or end consumers.

Why it is growing in importance:

• Consumer demand: Younger urban consumers increasingly want to know where and how their clothes are made
• EU legislation: The EU is implementing the Corporate Sustainability Reporting Directive (CSRD) and Textile Labelling Regulation that will require supply chain disclosure from companies selling in Europe — impacting Indian exporters
• Brand differentiation: Brands that can show traceable supply chains command premium pricing and stronger consumer trust

For Indian wholesale buyers (domestic): Not yet a legal requirement for domestic trade. But D2C brands and Instagram boutiques that voluntarily disclose their Surat supplier or handloom weaver origin are building a trust advantage in competitive markets.