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Industry Updates

EU, Ministry of Textiles Launch 7 Projects for India’s Textile

Published: February 18, 2025
Author: Fashion Value Chain

On the sidelines of the ongoing Bharat Tex, the European Union (EU) and the Ministry of Textiles today jointly inaugurated seven new projects to strengthen India’s textile and handicraft industry. These projects, which span the whole value chain and are supported by an EU grant of EUR 9.5 million (INR 85.5 crores), are intended to promote sustainable development, resource efficiency, and inclusive growth in the Indian textile industry while also boosting livelihoods and women’s economic empowerment.

Over the course of the next three to five years, 35,000 direct beneficiaries—including 15,000 MSMEs, 5,000 artisans, and 15,000 farmer-producers—will benefit from the implementation of these seven projects, which cover the entire value chain and will be spread across nine Indian states: Assam, Andhra Pradesh, Telangana, Uttarakhand, Uttar Pradesh, Odisha, Jharkhand, Bihar, and Haryana. A more inclusive, sustainable, and prosperous textile ecosystem is anticipated as a result of the estimated 200,000 women who will be economically empowered by these projects, many of which will also benefit nearby towns and industries.

This project builds on the EU’s ongoing collaboration with India on sustainability and circular economy, aligning with the Ministry of Textiles’ “Sustainable Bharat Mission for Textiles.” The funding, part of the EU’s Global Gateway Strategy, complements the ongoing EU-India Resource Efficiency Circular Economy initiative, co-funded by the German Federal Ministry (BMUV), and is executed jointly with the Ministry of Environment, Forest, and Climate Change, Government of India, and being implemented by GIZ.  The projects, to be run in partnership with  government agencies and private sector partners, have been designed to help preserve Indian cultural heritage in textiles while promoting economic self-sufficiency through enhanced innovation, competitiveness, and market linkages. India’s textile and apparel sector is key and more than 45 million are employed in this field of which 60% are stated to be women. Despite its projected share in India’s export earnings, challenges such as emissions, energy usage, water consumption and low level of recycling persist.

Textiles’ Toolkit, prepared along with GIZ, for fostering Circular Economy and Resource Efficiency in the sector was also launched today. 

Speaking on the occasion of the launch, the Minister Counsellor and Head of Cooperation of the EU Delegation to India, Mr 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.”

The 7 newly launched projects will be implemented by Humana People to People India, Deutsche Welthungerhilfe EV, Stiftelsen Varldsnaturfonden WWF, Professional Assistance for Development Action, Network for Enterprise Enhancement and Development Support, Foundation for MSME Clusters and Intellecap Adivsory Services Pvt. Ltd. 

The projects will work on a range of products such as production and promotion of natural dyes, bamboo craft, handlooms, shawls, traditional handicrafts and textiles with a view to enhance production, branding, and market access.

Increasing income opportunities of women, facilitating collaborations among artists, producers, CSOs, government institutions, and market stakeholders remains an overarching goal of all projects. In addition, reducing negative impact on the environment, promoting circularity and resource efficiency will be integrated in all project activities.

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