Government Expands Sustainable Textile Production Initiatives and ESG Framework

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Focus on green technology, waste reduction, and eco-friendly practices across textile value chain

The Government of India has outlined multiple initiatives to promote environmentally sustainable production practices in the textile sector. These measures address areas such as green technology adoption, recycling, and waste reduction to align with global sustainability requirements. The initiatives also aim to improve competitiveness, market access, and environmental resilience.

In response to the increasing global emphasis on sustainable manufacturing, the Government has introduced several measures to support environmentally responsible practices in the textile industry. These include efforts to adopt green technologies, reduce waste, and enhance recycling across the value chain.

An Environment, Social and Governance (ESG) Task Force has been constituted to address issues related to sustainable production, certification, and exports. The Task Force acts as a platform for industry discussions and has facilitated programmes focused on knowledge sharing and best practices through initiatives such as Circular Samvaad and the Cluster Exchange Mechanism.

Under the Amended Technology Upgradation Fund Scheme (ATUFS), which remained valid up to 31.03.2022, more than 1,117 energy-saving machines have been supported to improve water and energy efficiency in textile manufacturing. Additionally, under the Integrated Processing Development Scheme (IPDS), six Common Effluent Treatment Plants (CETP) incorporating Zero Liquid Discharge (ZLD) technology have been approved.

The Government has also implemented pilot projects across the country aimed at building awareness and capacity in sustainable production and consumption. These projects cover areas such as elimination of hazardous chemicals in the textile value chain, development of eco-friendly and organic textiles, textile waste management and reuse, life cycle analysis, carbon footprint assessment, and natural dyeing processes.

One such initiative, titled ‘Eliminating Hazardous Chemicals from Textile Fashion Supply Chain in India’, is being implemented across 400 factories in eight clusters and four fashion houses. The project is designed to mitigate 1,47,000 tCO2eq emissions and reduce the use of harmful chemicals by 10,530 tonnes.

Under the National Technical Textiles Mission (NTTM), several research and development projects have been sanctioned with a focus on sustainable technologies and materials.

In the Union Budget 2026-27, the Hon’ble Finance Minister announced an Integrated Programme for textiles, which includes the Tex-Eco Initiative aimed at promoting globally competitive and sustainable textiles and apparel.

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