Circularity in India's textile and apparel industry

The textile and apparel industry in India is a cornerstone of India’s economy, contributing 2% to its GDP and ranking as the sixth-largest textile producer globally. However, it is also a significant contributor to environmental degradation, generating vast amounts of waste and consuming substantial natural resources. To address these challenges, a new initiative funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) aims to promote circular practices within the industry.

The problem: Environmental and social challenges

India's textile sector faces numerous sustainability challenges, including:

• Waste generation: Around 900,000 tons of textile waste are produced annually, much of which is improperly disposed of, leading to environmental pollution.

• Resource intensity: The industry relies heavily on water, chemicals, and energy, contributing to significant resource depletion.

• Limited recycling and reuse: Current waste management practices are fragmented, with low recycling rates and limited use of recycled materials.

• Poor working conditions: Many workers, especially women and marginalized groups, experience unsafe and unfair working conditions​

The solution: Circularity and innovation

The partnership between Aditya Birla Fashion and Retail Limited (ABFRL) and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) began with a vision to address the pressing environmental challenges posed by the textile industry. Over the past three years, the collaboration has spearheaded a series of impactful initiatives aimed at transforming India's textile sector. These initiatives included a comprehensive baseline survey to assess the current state of circularity, the Circularity Innovation Challenge 2023 to foster sustainable solutions, and the nationwide training program, "Decoding Circularity Together" to empower stakeholders across the textile value chain.

Key components include:

1. Circular business models: Training over 300 companies to adopt circular practices, such as recycling, reuse, and sustainable production techniques.

2. Circularity manifesto: Developing industry guidelines to promote circular approaches across the value chain, from design to disposal.

3. Demonstration projects: Piloting innovative recycling technologies to convert textile waste into high-quality materials, such as rejuvenating cotton waste into virgin-like fibers.

4. Capacity building: Engaging educational institutions and industry stakeholders to build skills and knowledge related to circularity.

5. Knowledge sharing: Creating platforms for collaboration between public and private sectors, fostering a community focused on sustainable practices​

Outcomes and future prospects

The initiative aims to significantly reduce the environmental impact of the textile industry by establishing formal waste management systems, enhancing resource efficiency, and creating new economic opportunities. By 2024, the project hopes to have influenced thousands of stakeholders across the industry, setting a benchmark for sustainable practices in global textile production.

Circularity guidelines

ABFRL, in partnership with GIZ, unveiled India’s first circularity guidelines for the textile and apparel industry at the Sankalp Bharat Summit 2024 in Varanasi. The event drew prominent industry leaders, government representatives, and sustainability experts, underscoring the importance of this achievement for the sector. This initiative represents the culmination of a three-year collaboration dedicated to transforming the Indian textile industry through circular economy practices, innovation, and sustainable growth.

“Our three-year partnership with GIZ has been a transformative journey that showcases the true power of industry collaboration in achieving a meaningful change. The launch of these circularity guidelines marks a defining moment for us, reflecting our unyielding commitment to collaborate with the fashion industry towards sustainability and to champion the development of a circular textile ecosystem,” said Mr. Ashish Dikshit, Managing Director, ABFRL.

Building on this, Dr. Naresh Tyagi, Chief Sustainability Officer, ABFRL, commented, “ABFRL and GIZ have worked together to create circular guidelines and other initiatives that industry players can leverage to work in a holistic manner, benefiting both the environment and society.”

“As a partner for international cooperation for sustainable development, we are committed to building a future worth living. The cooperation with ABFRL has great potential to initiate and scale circular economy and resource efficiency approaches in the Indian textile industry. In our opinion, combining the strengths of public and private sector partners creates a win-win scenario, delivering both development benefits for local populations and business advantages for private companies,” said Ms. Meghana Kshirsagar, Senior Advisor, Climate Change and Circular Economy at GIZ India, highlighting GIZ’s perspective.

The guidelines, enriched with case studies and best practices, offer a practical roadmap for Indian businesses to embed circularity across all stages of production—from sourcing sustainable materials to fostering consumer participation in circular initiatives. This comprehensive approach aims to inspire stakeholders throughout the value chain, including manufacturers, policymakers, and retailers, to collaboratively build a sustainable textile ecosystem in India.

The launch of these guidelines at the Sankalp Bharat Summit 2024 represents a significant milestone in the partnership between ABFRL and GIZ, highlighting their leadership in advancing sustainability within the textile sector. By demonstrating the potential of circular business models to reduce environmental impact while fostering innovation and economic growth, the partnership has set a new standard for the industry. Looking ahead, ABFRL and GIZ remain committed to empowering stakeholders, scaling pilot projects, and driving the broader adoption of circular practices across the industry.