Govt. outlines textile recycling push under Tex-Eco
14 August 2026: Minister of State for Textiles Pabitra Margherita on 11 August 2026 told Lok Sabha that the government is promoting textile recycling, recycling technologies and a wider shift to a circular economy across the textile value chain.
In the Union Budget 2026-27, the Finance Minister announced the Tex-Eco Initiative to build a more competitive and sustainable textiles and apparel sector. According to the ministry, the initiative is meant to support circular technologies such as textile waste management, recycling and value addition, along with recycled fibres, new materials, sustainable packaging and other high-value products from discarded textiles. Collaboration is planned with research institutions, Textile Research Associations, Centres of Excellence, industry, start-ups and other stakeholders.
The ministry also cited its study, “Mapping of Textile Waste Value Chain in India.” The report, released in March 2026, estimates that India generates about 70.73 lakh tonnes of textile waste a year. Of this, roughly 42 percent comes from pre-consumer sources such as manufacturing waste, and about 58 percent from post-consumer disposal. Earlier ministry material on the same study said more than 70 percent of total textile waste is already recovered into recycling, upcycling, downcycling or reuse streams.
An Environment, Social and Governance (ESG) Task Force has been set up to look at sustainable production, certification and exports. The government said the task force also supports industry-facing programmes such as Circular Samvaad and the Cluster Exchange Mechanism.
Other measures listed in the written reply include ….
– a UNIDO-Global Environment Facility project to eliminate hazardous chemicals from the textile fashion supply chain;
– the UNEP-supported In-Tex India project, which uses Life Cycle Assessment (LCA) and Product Environmental Footprint (PEF) methods to speed the shift to circularity;
– environmentally focused research and development under the National Technical Textiles Mission (NTTM);
– work on a sustainability framework for PM MITRA Parks; and
– an MoU among the Textiles Committee, the Standing Conference of Public Enterprises (SCOPE) and Government e-Marketplace (GeM) to promote upcycled products in government procurement.
The ministry said these steps are sector-wide and are intended to aid technology adoption, research, innovation, sustainable manufacturing and circular practices across the textile value chain. The reply does not set new statutory targets, timelines or funding envelopes for the listed programmes.
FAQ
What is the Tex-Eco Initiative ? It is a Union Budget 2026-27 announcement aimed at supporting circular and sustainable technologies in textiles and apparel, including waste management, recycling and recycled-fibre development.
How much textile waste does India generate ?
The ministry’s mapping report estimates about 70.73 lakh tonnes a year, split roughly between pre-consumer and post-consumer sources.

