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EU & India launch 7 projects to boost textile & handicraft sector

17 Feb '25
3 min read
EU & India launch 7 projects to boost textile & handicraft sector
Pic: Adobe Stock

Insights

  • The EU and India's Ministry of Textiles launched seven projects with a ~$9.97 million grant to boost India's textile and handicraft sector on the sidelines of Bharat Tex.
  • Implemented across nine states, benefitting 35,000 people, the initiatives promote sustainability, resource efficiency, and market access.
  • The projects align with India's Sustainable Bharat Mission and the EU's Global Gateway Strategy.
Seven new projects were launched by the European Union (EU) and the Indian Ministry of Textiles to strengthen India's textile and handicraft industry on the sidelines of the ongoing Bharat Tex. Funded by the EU with a €9.5 million (~₹85.5 crore or ~$9.97 million) grant, these initiatives aim to foster inclusive growth, resource efficiency, and sustainability across the entire value chain in the Indian textile sector.

The seven projects will be implemented across nine Indian states—Assam, Andhra Pradesh, Telangana, Uttarakhand, Uttar Pradesh, Odisha, Jharkhand, Bihar, and Haryana—benefitting 35,000 direct beneficiaries, including 15,000 MSMEs, 5,000 artisans, and 15,000 farmer-producers, over the next three to five years.

These initiatives will focus on a range of products such as the production and promotion of natural dyes, bamboo crafts, handlooms, shawls, and traditional handicrafts and textiles, with the aim of enhancing production, branding, and market access.

The projects will be implemented by Humana People to People India, Deutsche Welthungerhilfe EV, Stiftelsen Världsnaturfonden WWF, Professional Assistance for Development Action, Network for Enterprise Enhancement and Development Support, Foundation for MSME Clusters, and Intellecap Advisory Services Pvt Ltd.

This project builds on the EU's ongoing collaboration with India on sustainability and the circular economy, aligning with the ‘Sustainable Bharat Mission for Textiles’ by the Ministry of Textiles. The funding, part of the EU's Global Gateway Strategy, complements the ongoing EU-India Resource Efficiency and Circular Economy Initiative, co-funded by the German Federal Ministry (BMUV). This initiative is being executed jointly with the Ministry of Environment, Forest, and Climate Change, Government of India, and implemented by GIZ.

The projects have been designed to preserve India's cultural heritage in textiles while promoting economic self-sufficiency through enhanced innovation, competitiveness, and market linkages.

The Textiles Toolkit, developed in collaboration with GIZ, was also launched to promote circular economy and resource efficiency in the sector.

Speaking on the occasion of the launch, the Minister Counsellor and Head of Cooperation of the EU Delegation to India, Franck Viault said, “While fast fashion dominates global trends, both the EU and India have been making serious effort to make the textile industry more sustainable. India's rich textile heritage is internationally acclaimed, particularly in Europe. By merging tradition with innovation and technology, India's textile sector can leapfrog into a sustainable future. As a key partner, the EU is committed to supporting India's circular economy agenda, sharing best practices, and promoting environmentally sustainable practices in this vital sector.”

Fibre2Fashion News Desk (HU)

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