EU and India unite to drive sustainable growth in textiles

The EU and India’s Ministry of Textiles have launched seven projects with a EUR 9.5 million grant to promote sustainability, resource efficiency, and inclusive growth in the textile sector. Implemented across nine states, these initiatives will support 35,000 beneficiaries, including MSMEs, artisans, and farmers, while empowering 200,000 women.

Image Source: Freepik 

The European Union (EU) and the Ministry of Textiles jointly introduced seven projects on Saturday to enhance India’s textile and handicraft industry during Bharat Tex. Supported by an EU grant of EUR 9.5 million (INR 85.5 crores), these initiatives aim to drive inclusive growth, sustainability, and resource efficiency while supporting livelihoods and empowering women economically.

These projects, covering the entire value chain, will be implemented in nine Indian states—Assam, Andhra Pradesh, Telangana, Uttarakhand, Uttar Pradesh, Odisha, Jharkhand, Bihar, and Haryana. Over the next three to five years, they will benefit 35,000 individuals, including 15,000 MSMEs, 5,000 artisans, and 15,000 farmer-producers. By also supporting local communities and industries, the initiatives are expected to economically empower around 200,000 women, fostering a more inclusive and sustainable textile sector.

Aligned with the Ministry of Textiles’ “Sustainable Bharat Mission for Textiles,” the project builds on the EU’s ongoing sustainability and circular economy efforts. The funding falls under the EU’s Global Gateway Strategy and complements the EU-India Resource Efficiency Circular Economy initiative, co-funded by Germany’s BMUV. Implemented in collaboration with the Ministry of Environment, Forest, and Climate Change and GIZ, the projects aim to preserve India’s textile heritage while enhancing innovation, competitiveness, and market access. India’s textile sector employs over 45 million people, with women comprising 60%, yet challenges like emissions, energy use, water consumption, and low recycling persist.

A Textiles’ Toolkit, developed with GIZ to promote circular economy and resource efficiency, was also launched.

Minister Counsellor Franck Viault emphasized, “While fast fashion dominates global trends, both the EU and India have been making serious effort to make the textile industry more sustainable.”

The projects will be implemented by organizations such as Humana People to People India, WWF, and Intellecap Advisory Services. They will focus on natural dyes, bamboo crafts, handlooms, shawls, and traditional textiles, aiming to boost production, branding, and market access while fostering collaborations and environmental sustainability.