The global textile and apparel sector, long criticised as an environmental disrupter due to high water usage, emissions and waste generation, is undergoing a structural reset. Sustainability, circularity, reuse and recycling have emerged as the new mantra for global buyers, with the EU leading regulatory action through tighter environmental, traceability and product-lifecycle requirements.
Against this backdrop, the Budget’s focus on building a globally competitive and sustainable textile ecosystem under Tex-Eco Initiative is being seen as strategically aligned with international market realities. The initiative aims to strengthen domestic capacities, improve compliance readiness and support MSMEs in meeting evolving global standards.
Industry experts noted that Budget measures encouraging circularity and recycling are expected to accelerate the development of domestic textile recycling hubs, including established centres such as Panipat and Coimbatore, alongside emerging clusters. These hubs play a critical role in fibre recovery, reuse and value-added recycling, which are increasingly demanded by global brands seeking lower-impact sourcing options.
With the India–EU Free Trade Agreement (FTA) opening new market access, industry bodies believe sustainability-led policy support will be crucial in cementing India’s position in Europe. The EU remains one of the world’s most environmentally regulated markets, with stringent expectations on material sourcing, waste reduction and circular production models.
Industry leaders said the Budget signals a clear policy shift towards aligning India’s textile and apparel sector with global sustainability benchmarks, helping position the country as a reliable, compliant and future-ready sourcing destination in Europe and other advanced markets.
Fibre2Fashion News Desk (KUL)
20251212121144.gif)
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
