The woollen yarn industry of Bikaner serves as a vital component of the Rajasthan textile sector because it generates jobs and drives industrial growth and supports export activities and preserves traditional craftsmanship. The industry developed from its beginnings as a small traditional operation into an organized production enterprise which serves both local and global markets. The industry faces challenges to its ability to operate sustainably and maintain its competitive edge because of increasing market competition and environmental issues and higher production expenses and technological advancements and alterations in consumer behavior. The study evaluates sustainability and economic performance of Bikaners woollen yarn industry through its assessment of economic environmental social and technological elements that impact the industrial operation. The study objectives include identifying critical factors that determine industrial sustainability while assessing the competitive strength of woollen yarn businesses within the region. The research uses primary data sources together with secondary data sources. The researchers gathered primary data through structured questionnaires and interviews which they conducted with industrial owners and workers and traders and local stakeholders from the woollen yarn industry. Government reports and industrial publications and textile journals and trade statistics and previous academic studies served as the sources from which the researchers obtained secondary data. The study uses descriptive and comparative analytical methods to analyze the data which has been collected for research purposes. The researchers applied statistical methods including percentage analysis and mean score analysis and ranking methods and tabular interpretation to present their results in a clear format which enables them to draw important conclusions. The study shows that Bikaner’s woollen yarn industry maintains strong competitive advantages because of its traditional expertise and raw wool availability and low labor costs and regional specialization and established market connections. The industry confronts major sustainability problems because it uses outdated machinery and lacks effective waste disposal systems and creates environmental contamination and experiences power outages and suffers from insufficient funding and faces rising threats from synthetic yarn manufacturers. The research shows that industries which implement modern equipment together with environmentally sustainable methods and quality assurance processes achieve superior productivity results while being more competitive in the marketplace than traditional businesses. The study demonstrates that companies which implement environmental sustainability practices through recycling and water conservation and controlled chemical usage see improved industrial reputation and better efficiency in their operations. The research shows that sustainable industrial development serves as the foundation which will help Bikaner’s woollen yarn industry grow in the future. To keep industrial strength in dynamic market environments, businesses need to establish policy frameworks and adopt advanced technology and implement environmental protection programs and develop workforce skills and build necessary facilities. The research results provide insights into how industries in specific regions achieve sustainable development while delivering practical guidance for policymakers and business owners and researchers who study sustainable textile manufacturing in India.