Weaving sustainability into India’s textile future through circular economy
- IBEF
- July 14, 2026
Sustainability is emerging as a key growth driver for India's textile and apparel industry as the country accelerates the transition towards a circular economy through policy support, cleaner production technologies, waste recovery and responsible sourcing. The sector contributes nearly 2% to India's Gross Domestic Product (GDP) and around 11% of manufacturing Gross Value Added (GVA), while providing direct employment to more than 45 million people. India is also the world's sixth-largest exporter of textiles and apparel, accounting for around 4% of global exports. The country currently manages nearly 7.8 million tonnes of textile waste annually, with over 70% recovered through recycling, upcycling, downcycling and reuse, while nearly 95% of pre-consumer textile waste is reintegrated into production. The textile waste recovery ecosystem supports livelihoods for around 40-45 lakh people, particularly women from marginalised communities, reinforcing the sector's contribution to inclusive and sustainable growth.
The Government is strengthening sustainable textile manufacturing through initiatives such as the National Programme for Organic Production (NPOP), Jute-ICARE, the New Age Fibre Mission and the National Fibre Scheme, while integrating green infrastructure into the PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks. Seven PM MITRA Parks have been approved with a total outlay of Rs. 4,445 crore (US$ 464.34 million), while memoranda of understanding involving potential investments exceeding Rs. 27,434 crore (US$ 3.10 billion) had been signed by December 2025. The Government is also promoting green technologies through the Raising and Accelerating MSME Performance (RAMP) Programme, implementing the Carbon Credit Trading Scheme, expanding textile recycling and introducing eco-labelling under the Eco-Mark Scheme, 2024. India's textile recycling market is projected to reach Rs. 33,505.50 crore (US$ 3.50 billion) by 2030 and generate nearly one lakh green jobs over the next five years, strengthening the country's position as a global hub for sustainable textiles and circular manufacturing.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Partners
