India’s textile recycling industry could grow into a $3.5 billion market by the end of the decade as the country strengthens efforts to manage textile waste and build a more circular textile economy, according to a new report released by India’s Ministry of Textiles.
The report, titled Mapping of Textile Waste Value Chain in India, was launched in New Delhi on March 10 by Union Minister of Textiles Giriraj Singh. The study examines the scale of textile waste generation in the country, identifies recovery methods and recycling technologies, and outlines opportunities to expand recycling infrastructure across India’s textile value chain.
According to the report, India currently generates around 7.07 million tonnes of textile waste annually. Of this total, approximately 42 percent comes from pre-consumer waste generated during manufacturing processes, while 58 percent originates from post-consumer disposal of used garments and textiles.
Despite the large volume of waste, India already recovers a significant portion through recycling, reuse and upcycling initiatives. The report estimates that more than 70 percent of the country’s textile waste is currently diverted from landfill through various recovery channels.
Pre-consumer waste recovery rates are particularly high within the textile manufacturing sector. The report indicates that roughly 95 percent of textile waste generated during production processes is recovered and reused within the industry.
The spinning segment is highlighted as one of the strongest examples of circular material use. Nearly all spinning waste generated in yarn production is reused in the manufacturing process due to consistent fiber quality and established industry standards.
Recycling of post-consumer waste is comparatively more complex because it involves the collection, sorting and processing of used garments from households and businesses. According to the report, about 55 percent of post-consumer textile waste is currently diverted from landfills.
A large portion of this recovery is supported by India’s extensive informal waste collection network. The report estimates that between 4 million and 4.5 million people are engaged in collecting, sorting and redistributing used textiles across the country.
Many of these workers are women from economically marginalized communities who depend on textile waste management activities for their livelihoods.
Also read: Brückner Showcases at Knit‑Tech 2026 in Tirupur, Indian Textile Hub
The report notes that expanding recycling infrastructure and formalizing waste collection networks could significantly improve recovery rates and support the development of a more organized recycling ecosystem.
Mechanical recycling currently dominates India’s textile recycling sector. This process involves shredding used textiles into fibers that can be reused to produce new yarns, fabrics or insulation materials.
However, the report highlights the growing potential of chemical recycling technologies. Unlike mechanical recycling, chemical recycling can break down textile fibers at the molecular level, allowing them to be regenerated into new fibers that are comparable to virgin materials.
Industry experts believe chemical recycling could play a key role in enabling textile-to-textile recycling, where old garments are transformed into new fabrics without significant loss of fiber quality.
The report also identifies regional recycling clusters that play an important role in India’s textile recycling ecosystem. Panipat, located in the northern state of Haryana, is recognized as one of the country’s largest centers for mechanical textile recycling.
Panipat is widely known for processing large volumes of textile waste into recycled yarns and fabrics used in blankets, carpets and other home textile products.
The report suggests that developing similar recycling hubs in other major textile manufacturing regions could help process waste closer to its source, improving efficiency and reducing transportation costs.
At the launch event, Minister Giriraj Singh said India’s textile industry is well positioned to lead the global transition toward circular production models.
He noted that the country’s large textile manufacturing base, combined with an existing recycling ecosystem, provides strong foundations for expanding textile waste management and recycling activities.
“The textile sector is one of the largest industries in India and holds significant potential to lead the shift toward sustainable and circular production systems,” Singh said.
He added that the new report provides a comprehensive roadmap for transforming textile waste into an economic opportunity while supporting environmental sustainability.
Industry analysts say the growing focus on recycling and circularity is being driven by increasing global pressure on fashion brands and textile manufacturers to reduce waste and carbon emissions.
As international markets introduce stricter sustainability standards, expanding textile recycling capacity could help India strengthen its position in global apparel supply chains while creating new economic opportunities within the domestic textile sector.
The report estimates that expanding recycling infrastructure could create up to 100,000 new green jobs in India by 2030 as the country builds a more structured and technologically advanced textile recycling industry.
