Government promotes circular manufacturing and recycling

The Indian government has introduced several initiatives to encourage textile recycling, the use of new recycling technologies and more sustainable manufacturing practices as part of its efforts to move the textile industry towards a circular economy.

Under the Union Budget 2026-27, the government announced the Tex-Eco Initiative to help build a competitive and sustainable textile and apparel industry. The programme is aimed at supporting the sector while encouraging more environmentally responsible production.

The initiative will focus on developing new technologies for managing and recycling textile waste. It will also support the creation of recycled fibres, innovative materials, sustainable packaging and other higher-value products made from discarded textiles. The aim is to increase the value of textile waste while reducing the amount sent for disposal.

The Ministry of Textiles has also carried out a study titled “Mapping of Textile Waste Value Chain in India” to understand the amount of textile waste generated across the country. The study covers both pre-consumer waste from manufacturing activities and post-consumer textile waste.

To further support sustainable production, the government has formed an Environment, Social and Governance (ESG) Task Force. The task force will examine areas including sustainable manufacturing, certification and textile exports. The government is also supporting industry-focused programmes such as Circular Samvaad and the Cluster Exchange Mechanism to encourage collaboration and the sharing of knowledge within the sector.