TEXTILE RECYCLING AND CIRCULAR ECONOMY

Executive Summary This report details the Government of India’s initiatives to promote textile recycling and a circular economy, centered on the ‘Tex-Eco Initiative’ announced in the Union Budget 2026–27. These measures aim to enhance global competitiveness through innovative waste management, sustainable manufacturing, and international collaborations. Key actions include the establishment of an ESG Task Force and the promotion of upcycled products in government procurement to facilitate a sector-wide transition to sustainability.

Key Points / Main Content

• Strategic Government Initiatives

  • Introduction of the ‘Tex-Eco Initiative’ (Union Budget 2026–27) to support innovative technologies for textile waste management, recycled fibers, and sustainable packaging.
  • Formation of an Environment, Social and Governance (ESG) Task Force to deliberate on certification, exports, and sustainable production.
  • Facilitation of industry-centric programs including "Circular Samvaad" and the "Cluster Exchange Mechanism."

• Research and Data Mapping

  • Completion of the study “Mapping of Textile Waste Value Chain in India” to estimate waste generation from both manufacturing (pre-consumer) and post-consumer sources.
  • Provision of R&D support for environmentally sustainable projects under the National Technical Textiles Mission (NTTM).

• International Collaborations and Standards

  • Execution of the UNIDO-GEF project aimed at eliminating hazardous chemicals from the fashion supply chain.
  • Implementation of the UNEP-supported "In-Tex India Project" to transition the sector toward circularity using Life Cycle Assessment (LCA) and Product Environmental Footprint (PEF) tools.

• Infrastructure and Procurement

  • Development of a dedicated sustainability framework for PM MITRA Parks.
  • Promotion of upcycled products in Government procurement via an MoU between the Textiles Committee, SCOPE, and Government e-Marketplace (GeM).

Impact Analysis

Textile Manufacturers and Industry Start-ups Impact They gain access to new technologies, research support, and high-value opportunities in recycled fibers and sustainable materials. Action Required Adopt circular economy practices and collaborate with research institutions to integrate innovative recycling technologies into their production chains.

Research Institutions and Centres of Excellence Impact Increased involvement in government-funded R&D and value-addition projects for discarded textiles. Action Required Partner with industry stakeholders and the Ministry of Textiles to develop new materials and sustainable packaging solutions.

Government Departments and Public Enterprises (SCOPE, GeM) Impact Procurement policies are shifted to prioritize upcycled and sustainable products. Action Required Implement the provisions of the MoU to facilitate the listing and purchase of upcycled textile products on the Government e-Marketplace.

PM MITRA Parks Impact These industrial parks are now subject to a standardized sustainability framework. Action Required Incorporate circular economy practices and environmental standards as prescribed by the new sustainability framework.