Circular Economy in Textiles:
Global Best Practices in Hazardous Chemical Elimination

Background:
India holds the position of the world's second-largest textile manufacturing hub, contributing 5% to the global textile and apparel trade. With a current market size of $154 billion (2023), the sector is projected to grow to $350 billion by 2030, driven by abundant raw materials, skilled labor and a rich heritage of textile craftsmanship.
Government initiatives like the Production Linked Incentive (PLI) scheme, PM MITRA parks and relaxed FDI norms (allowing 100% foreign direct investment) aim to attract global investments. Strategic trade agreements with key markets such as the UAE, Australia, ASEAN and Japan further strengthen India’s position as a textile investment hub.

Despite these strengths, the sector faces challenges including infrastructure gaps, meeting international sustainability standards, and fostering innovation to maintain global competitiveness.
 

The UNIDO Panel Discussion (PD45) at Bharat Tex 2025 brought together global experts, policymakers and industry leaders to explore best practices in hazardous chemical elimination and the transition to circularity in textiles. Held against the backdrop of India’s thriving textile sector, the session addressed key challenges, including infrastructure gaps, sustainability compliance and innovation-driven competitiveness.
 

Discussions highlighted strategies to unlock investments in sustainable textile manufacturing, leveraging India’s PLI schemes, FDI incentives and strategic trade agreements. Experts emphasized the importance of global collaboration, policy interventions and cutting-edge technologies to drive sustainable transformation in India’s textile value chains.

By showcasing scalable solutions and international case studies, PD45 reinforced India’s potential as a global hub for circular and responsible textile production. The session provided actionable insights for aligning the industry with international sustainability standards, ensuring long-term growth and resilience.

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Chair:

• Ministry of Textiles, Government of India

 

Moderator:

• Arpit Bhutani – Circular Innovation Lab, Denmark

Speakers:

• Ms. Ozunimi ITI – UNIDO, Vienna

• Ms. Yiliqi – NRDC, Washington DC

• Ms. Eva Benavidez – Better Cotton, Geneva

• Ms. Barbara Oswald – Bluesign, Geneva

• Mr. Salil Dutt – UNIDO, Jakarta