The Urgent Need for a Green Transition in Textiles

The global textile industry is at a turning point. Conventional sourcing and production methods have a profound environmental impact, contributing to extensive land use, high CO₂ emissions, excessive water consumption, and chemical waste. A sustainable shift demands disruptive innovation across the entire value chain—ranging from new materials and technologies to circular business models and closed-loop practices. Achieving this transformation requires a multi-stakeholder approach, bringing together research institutions, technology providers, textile producers, policymakers, and regulators to drive systemic change.

India’s Textile Industry: A Landscape of Opportunity

As the world’s second-largest cotton producer, India plays a pivotal role in the global textile supply chain. Unlike countries such as Bangladesh, China, and Turkey, India’s industry is structured around regional textile clusters, which offer unique opportunities for circularity. These clusters foster collaboration between multiple factories in localized areas, enabling shared infrastructure, knowledge exchange, and sustainable innovations.

The scale and diversity of India's textile sector are immense. Across the country, countless textile companies operate with varying levels of maturity, technological capabilities, and competitiveness. There are five major textile clusters, each specializing in distinct textile techniques, from large-scale industrial production to highly skilled handicrafts.

Preserving Handicraft Traditions in a Sustainable Future

India possesses a rich textile heritage, particularly in handicrafts, which remain a vital part of the industry. However, many traditional crafts are at risk of disappearing due to modernization and shifting market demands. Recognizing this, the Ministry of Textiles is actively working to preserve and promote these crafts, ensuring their relevance in contemporary markets. One key initiative is an online platform that showcases traditional textiles from different regions, making them more accessible to global buyers and brands.

Government-Led Sustainability Initiatives

From a sustainability perspective, the Indian government is driving initiatives to promote renewable energy adoption and efficiency improvements across the textile value chain. Several years ago, a dedicated task force was established to enhance ESG (Environmental, Social, and Governance) practices within the industry. These efforts align with broader global sustainability goals and present opportunities for international collaboration.

India and Denmark: Strengthening Sustainable Textile Trade

India is a crucial partner for Danish textile production and imports, accounting for DKK 2.4 billion in imports in 2021. However, navigating the landscape of sustainability regulations remains a challenge. Differences in national legislation, certification standards, and compliance requirements create a complex regulatory maze for both Danish and Indian companies. Danish brands, in particular, are seeking deeper insights into these evolving frameworks to align with sustainability goals while ensuring business viability.

The Challenge of Finding the Right Sustainable Partners

Sustainability practices among Indian textile manufacturers vary widely. While some companies are proactive in adopting circular economy principles, others prioritize cost efficiency over sustainability commitments. For international brands, identifying the right manufacturing partner—one that understands and integrates circular economy practices—is critical. It requires thorough due diligence, long-term collaboration, and alignment on sustainability goals.

Insights from My Visits to India

During my recent trips to India, I engaged with key stakeholders, including recycled fiber manufacturers, professors from the National Institute of Fashion Technology, and local industry experts. These conversations provided valuable insights into how circularity is being implemented within the Indian textile ecosystem. While challenges remain, there is a growing movement toward sustainability, driven by both industry players and regulatory frameworks.

By fostering partnerships, leveraging India’s cluster-based production model, and aligning with government-led sustainability efforts, the textile industry can take significant steps toward a greener future. However, success will depend on collaboration, transparency, and a commitment to systemic change across the value chain.

Circular Economy in India

Circular economy (CE) is deeply embedded in Indian culture, where sustainability and resourcefulness have long been a way of life. The practice of repurposing, minimizing waste, and creating value from existing resources is not new—it has been ingrained in traditional ways of living for generations. However, as an academic and business discipline, CE is rapidly gaining traction in India, with strong engagement from the central government, universities, and key industry leaders.

Since 2019, CE has been a topic of discussion at the highest levels of government and is gradually being integrated across various sectors. India’s approach appears more systematic and strategic compared to many other countries, with a strong emphasis on localized, skill-based, and handcrafted production. The government's ongoing efforts to promote traditional craftsmanship and regional industries further reflect this mindset, ensuring that circularity remains central to economic and industrial development.

Mechanical Recycling in India

Recycling and circular practices have long been part of India’s textile industry. In Panipat, known as the "recycling hub" of India, textile factories have been engaged in mechanical recycling of post-consumer textiles for over 40 years. These value chains, sourcing discarded textiles both domestically and internationally, have played a crucial role in reusing materials that would otherwise go to waste.

Since the 1980s, fiber-to-fiber mechanical recycling and downcycling (open-loop) have been well-established in Panipat, particularly as an extension of India’s rich textile handcraft traditions. Both pre-consumer (factory waste) and post-consumer (discarded clothing) textile waste—primarily from Western countries and Bangladesh—are processed by select Indian companies permitted to handle imported textile waste. These companies sort the materials and sell them to recyclers, who transform them into recycled yarns.

India’s recycling process is entirely mechanical, with textiles sorted by “family” colors and shades to avoid the need for re-dyeing. Traditionally, recycled yarns have been used in domestic carpet and home textile production, but ongoing improvements in quality—particularly in Panipat—are making recycled yarns increasingly viable for garment manufacturing as well.

Despite these advancements, significant challenges remain, particularly in traceability and chemical safety compliance. Developing robust systems to track and certify recycled materials will be crucial in scaling India’s circular textile economy and meeting global sustainability standards.