India targets high-value fiber recovery to close post-consumer textile loop

The Ministry of Textiles has officially prioritized the conversion of post-consumer waste into high-quality fiber, aiming to bridge the current gap where only 45-50 per cent of end-of-life garments are recycled compared to the near-total 97 per cent recovery of industrial pre-consumer scrap.

Highlighted by the Textile Commissioner on May 15, 2026, this shift aligns with the newly implemented Solid Waste Management Rules and the Tex-Eco Initiative. These frameworks are designed to formalize the fragmented collection of used apparel, which currently relies on an informal network of 40-45 lakh workers. By establishing advanced sorting hubs in clusters like Panipat and Tiruppur, the government expects to unlock an additional Rs 22,000 crore in economic value annually.

This is commercially vital as the EU’s Ecodesign for Sustainable Products Regulation (ESPR) begins to mandate rigorous recycled-content thresholds for Indian garment exports. Furthermore, the National Technical Textiles Mission is now deploying specialized chemical recycling technologies to recover high-performance fibers, such as aramids from protective gear, which mechanical processes previously could not handle. As global buyers demand verifiable circularity, these domestic investments ensure that Indian spinners maintain their lead in the sustainable yarn market while reducing dependence on volatile virgin cotton supplies.

The Tex-Eco program is a specialized government initiative designed to integrate circular economy principles within India’s textile and apparel supply chains. It focuses on modernizing recycling infrastructure, supporting small and medium enterprises with sustainable technology upgrades, and enhancing the traceability of recycled fibers to meet global environmental compliance standards and export requirements.