India Plans Textile Recycling Ecosystem to Advance Circular Economy

16 July 2026

The Maharashtra government has announced plans to develop a comprehensive textile recycling ecosystem aimed at promoting circular economy practices and reducing waste generated by the textile industry. The initiative, announced by Textile Minister Sanjay Savkare, seeks to strengthen sustainable resource management by encouraging the collection, recycling, and reuse of textile waste across the state.

The proposed ecosystem will bring together industry stakeholders, recyclers, technology providers, and government agencies to establish an efficient value chain for textile waste. By diverting discarded textiles from landfills and extending the lifecycle of materials, the initiative aims to reduce environmental pollution, conserve natural resources, and improve resource efficiency within one of India's largest textile-producing states.

The government also intends to support innovation and investment in textile recycling technologies while creating new business opportunities in the circular textile sector. Developing recycling infrastructure is expected to boost the availability of recycled fibres for manufacturers, helping reduce dependence on virgin raw materials and lowering the environmental footprint of textile production.

Beyond environmental benefits, the initiative is expected to generate employment in recycling, collection, sorting, and processing activities, contributing to the growth of a sustainable textile economy. It also aligns with India's broader objectives of promoting circular manufacturing, minimizing industrial waste, and advancing sustainable industrial development.

Once implemented, the textile recycling ecosystem could position Maharashtra as a leading hub for circular textiles, encouraging responsible production and consumption while supporting long-term environmental and economic sustainability.

A textile-recycling ecosystem is where India can actually reduce Scope 3 exposure for global apparel supply chains, and it addresses EPR expectations that are converging globally. Our circular-economy and supply-chain-and-operations teams help fashion, retail and consumer-goods clients evaluate textile-linked circularity and sourcing strategy.

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