Why it is Time for India’s Textiles to Embrace Circularity Amid Global Shifts

The global textiles and fashion industry, worth $2.5trn globally, is at an inflection point. Mounting environmental concerns, tightening regulations, shifting trade dynamics, overproduction and changing consumer expectations are pushing brands and nations to rethink how clothes are made, used and discarded. With textiles responsible for 10% of global carbon emissions and over 92mn tonnes of waste annually (UNEP), of which less than 1% is recycled into new garments, the call for circularity and sustainability is louder than ever.

In parallel, international policies are evolving. The EU’s Digital Product Passport (DPP) framework and the Ecodesign for Sustainable Products Regulation (ESPR) are setting stringent standards for traceability and material transparency. The US has recently introduced fresh tariffs on imports from key Asian garment-exporting nations, including China and Vietnam, signalling a strategic shift in sourcing.

This volatile global landscape presents a once-in-a-generation opportunity. And India—armed with a unique confluence of political will, traditional wisdom, industrial capacity and circular capabilities—is increasingly being viewed as a solution, not just a supplier.

Circular Shift Gets National Endorsement

What sets India apart is not just its scale or heritage, but a historic political validation of the circular economy narrative. In his recent ‘Mann Ki Baat’ address, Prime Minister Narendra Modi spotlighted INDIA as a shining example of textile recycling and upcycling—bringing national attention to the need for sustainable production and consumption. This is the first time a head of state of a major economy has publicly backed textile recycling and waste-to-fashion as a cultural and industrial ethos.

By mainstreaming these ideas into the national discourse, the Prime Minister has not only validated years of grassroots efforts but also laid the groundwork for national policy alignment and consumer mindset change. It reflects India's ambition to make circularity a national mission, not just an industry buzzword.

What is at Stake—and What Can be Achieved

India has set a clear ambition: to grow its textiles and apparel industry to $100bn in value by 2030 while simultaneously decarbonising, digitising and de-wasting its production systems.

The goals are threefold:

1.    Scale circular manufacturing capacity to handle both domestic and global textile waste.

2.    Comply with evolving international regulations on waste, traceability and product lifecycle impacts.

3.    Position India as the preferred destination for sustainable and ethical sourcing.

To do this, we must transform our current model—from fiber to fashion—into one that is regenerative, traceable, cost-effective and inclusive.

India Versus the World

- 69% textile recycling rate (vs. <20% global average)
- Capacity to recycle 5,000 tonnes of textile waste daily
- MSMEs make up 45% of industrial employment, capable of scaling circular models
- Largest cotton-growing area globally

Clusters like Panipat, Tirupur, Karur, Surat and Ludhiana are home to thousands of MSMEs that are embedded in local circular ecosystems—turning waste into yarns, fabrics, home furnishings and export-quality garments. Compare this to Vietnam or Bangladesh—who, despite being sourcing giants, lack similar scale of post-consumer or industrial waste recycling systems.

"India is not just a manufacturing destination. It is a ready-made solution for circular, sustainable and scalable fashion production."

What We Must Do Next

1. Formalise Waste Supply Chains
  Launch nationwide textile take-back programmes. Digitise inventory. Establish public-private aggregation centres. Build closed loop supply chains with global fashion brands.

2. Build Circular Hubs
   Modernise clusters with fiber-to-fiber recycling, de-blending and ESG-certified manufacturing.

3. Embrace Traceability and Compliance
   Support MSMEs to meet EU and US sustainability mandates. Prepare for DPP.

4. Mobilise Green Finance
   Develop sustainability-linked capital access. Create circularity-led procurement policies.

5. Train and Empower Workforce
   Upskill workers, especially women. Build a new cadre of circular entrepreneurs and designers.

India’s Circular Moment has Arrived

India’s textile legacy is rooted in sustainability—from the khadi movement to the reuse-and-repair culture of every Indian household. Now, we have the chance to lead a global shift—not through imitation, but by building a model that combines scale with sustainability, profit with purpose and growth with circularity.

With policy momentum at home and sourcing shifts abroad, India can become the world’s foremost circular textile manufacturing hub—not as a marketing slogan, but as a proven, measurable and profitable reality.

The author is a sustainability entrepreneur, ESG expert and founder of the Global Alliance for Textile Sustainability Council (GATS) and Aadi Sustainability Solutions