The Government of India has announced the Tex-Eco Initiative in the Union Budget 2026–27 to accelerate sustainable growth and strengthen circularity across the textile and apparel sector. The initiative will promote innovative textile recycling technologies, waste management solutions, recycled fibres, sustainable packaging, and value-added products developed from discarded textiles.
The announcement was made by the Union Finance Minister as part of efforts to build a globally competitive and environmentally sustainable textile industry. According to information provided by Minister of State for Textiles Shri Pabitra Margherita in a written reply in the Lok Sabha, the initiative will be implemented in collaboration with research institutions, Textile Research Associations (TRAs), Centres of Excellence, industry partners, start-ups, and other stakeholders.
Tex-Eco Initiative to Support Circular Textile Innovation
The Tex-Eco Initiative aims to encourage the adoption of innovative technologies that strengthen the circular economy within India’s textile sector. The programme focuses on:
- Textile waste management and recycling
- Development of recycled fibres
- Sustainable packaging solutions
- High-value products from discarded textiles
- Research, innovation and technology commercialisation
The initiative is expected to support resource efficiency while improving the global competitiveness of Indian textiles.
Government Expands Sustainable Textile Programmes
The Ministry of Textiles has also undertaken several projects to promote environmentally sustainable production practices and reduce the environmental impact of textile manufacturing.
UNIDO Project on Hazardous Chemicals
The Government is implementing the project “Eliminating Hazardous Chemicals from Textile Fashion Supply Chain” in partnership with UNIDO and supported by the Global Environment Facility (GEF).
The project aims to eliminate hazardous chemicals from India’s apparel supply chain while promoting sustainable manufacturing practices that reduce energy consumption, waste generation and greenhouse gas emissions.
In-Tex India Promotes Circular Business Models
Another major initiative, “Accelerating the Transition of the Indian Textile Sector towards Circularity (In-Tex India)”, is being implemented with the United Nations Environment Programme (UNEP).
The programme promotes circular business models using Life Cycle Assessment (LCA) and Product Environmental Footprint (PEF) methodologies to improve sustainability across textile manufacturing.
NTTM Continues Sustainable R&D
Under the National Technical Textiles Mission (NTTM), multiple research and development projects have been sanctioned to develop environmentally sustainable technologies and advanced textile materials.
These projects focus on innovation that supports cleaner manufacturing processes and sustainable technical textiles.
PM MITRA Parks Designed for Sustainable Manufacturing
The Government highlighted that the PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks are being developed as world-class industrial ecosystems that promote sustainable industrialisation, resilient infrastructure and innovation across the textile value chain.
Textile Waste Management Strengthened
To improve textile waste utilisation, the Government has undertaken several measures, including:
- Signing an MoU between the Textile Committee, Standing Conference of Public Enterprises (SCOPE) and the Government e-Marketplace (GeM) to promote procurement of upcycled products by government agencies.
- Publishing the report “Mapping of Textile Waste Value Chain in India”, which provides a comprehensive assessment of textile waste generation, recycling technologies, recovery pathways and opportunities to strengthen circularity across the sector.
Focus on Sustainable Growth
The Ministry stated that its overall strategy combines technology development, research, innovation and demand creation for recycled textile products. These initiatives are expected to improve resource efficiency, environmental performance and the global competitiveness of India’s textile and apparel industry while supporting the transition towards a circular economy.