EU, India Launch $10.3M Sustainability Projects for Textile Sector

New Delhi, Feb 18, 2025: The Ministry of Textiles of India and the European Union (EU) have initiated seven new projects that will promote sustainability and circular economy strategies in the textile and handicraft sector. The projects, funded by an EU grant worth €9.5 million ($10.3 million), will be implemented across nine Indian states and will support thousands of micro, small, and medium enterprises (MSMEs), farmers, and artisans.

The projects align with India's 'Sustainable Bharat Mission for Textiles' and the EU-India Resource Efficiency Circular Economy mission, with emphasis on reducing waste, ethical production, and economic empowerment of women entrepreneurs.

Scope and Impact of the Projects
The sustainability projects will benefit 35,000 individuals, including:

15,000 MSMEs
5,000 artisans
15,000 farmer-producers
In the next five years, the projects will impact positively as many as 200,000 women, opening up economic opportunities and improving sustainable business culture.

The programme also supports the EU Global Gateway Strategy for global partnerships for sustainable development, which also supports India's pursuit of reconciling green policies with its textile industry.

Overcoming Environmental Problems in Textiles
India's world largest textile industry, which employs over 45 million workers, 60% of whom are women, plays a tremendous role in the economy and employment generation. However, the industry also has enormous environmental issues, including high water and energy consumption, pollution, and textile waste.

To address these issues, the newly announced projects will focus on:

Promoting circular economy activities such as recycling and sustainable production methods
Promoting natural materials such as bamboo crafts, natural pigments, handlooms, and traditional clothing
Reducing usage of resources in order to curb emissions and promote efficiency
EU Delegation to India Minister Counsellor and Head of Cooperation Franck Viault emphasized that there needs to be a balance between innovation and tradition within the industry.

"Despite the dominance of fast fashion, the EU and India also believe in sustainability. India's textile heritage is world-famous, and by combining technology and tradition, the business can have a cleaner future," he said.

Facilitating Market Access and Women's Earnings
The initiatives will be led by Humana People to People India, WWF, and Intellecap Advisory Services and will work on:

Enhancement of production to enhance efficiency and sustainability
Marketing and branding initiatives for environmentally friendly textile commodities
Improving women's income-generating activities in rural and semi-urban areas
These projects anticipate improving the market access for green commodities and industry standards through interlinking artisans, producers, government institutions, and private sector market actors.

Launch of the Textiles Toolkit
Under this collaboration, the EU and India have also introduced a "Textiles Toolkit", which has been developed in partnership with the German development organization GIZ. The toolkit will serve as a handbook for firms to implement sustainable practices and move towards a circular economy model.

Strengthening EU-India Sustainability Ties
The textiles sector is one of the main drivers of economic growth in India, and coordination with sustainability objectives reflects the overall EU-India cooperation on climate and trade policy.By reducing the environmental impact while enhancing economic opportunities, these efforts highlight the growing emphasis on sustainable industrial development and responsible global supply chains.

Source
The information has been derived from EU Delegation to India, Ministry of Textiles, and industry reports.