New Delhi, April 22: India has the potential to unlock nearly $9.4 billion (₹78,500 crore) annually from its textile waste by strengthening collection, sorting, and recycling systems, according to a joint report by Federation of Indian Chambers of Commerce and Industry and the Resource Efficiency and Circular Economy Industry Coalition.
The report highlights that India generates approximately 7.25 million tonnes of textile waste each year, yet a large portion remains underutilised due to fragmented systems and limited infrastructure. It estimates that nearly 85% of the unrealised value lies in reuse pathways, which are currently underdeveloped.
A major concern identified is the inefficiency in post-consumer waste management, with nearly 45% of textile waste not entering recovery pathways and instead ending up in landfills or incineration.
Key Challenges in the Textile Waste Ecosystem
The report underscores several structural challenges:
- Fragmented collection systems limiting recovery efficiency
- Manual sorting dominance, with over 95% of sorting done without advanced technology
- Lack of standardised grading frameworks for textile waste
- Absence of a dedicated Extended Producer Responsibility (EPR) policy for textiles
- Limited traceability and source segregation mechanisms
- Heavy reliance on mechanical recycling, with minimal adoption of chemical recycling for blended fabrics
Sorting, described as the “value gate” of the ecosystem, remains a critical bottleneck due to low technological integration and lack of standardisation.
Roadmap to Unlock Value
To tap into the significant economic and environmental opportunity, the report recommends:
- Establishing a national EPR framework for textiles
- Investing in collection and sorting infrastructure
- Developing standardised grading and traceability systems
- Integrating the informal sector workforce into formal value chains
- Expanding recycling capacity, including advanced technologies
The report emphasizes that adopting circular material flows can enhance supply chain resilience, reduce dependence on virgin resources, and create sustainable economic value.
However, achieving this transformation will require coordinated action across policymakers, industry stakeholders, and infrastructure providers.
