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Message Foreword
The concept of circularity has emerged as a critical among Indian consumers in sustainability and ethical
pillar to address these challenges and create a more practices in the Apparel and Textile industry. A study
sustainable future for the industry and the world at by Nielsen India found that 85% of Indian consumers
large. By adopting best circular practices, companies are willing to pay more for sustainable products, and
can reduce their environmental impact, improve 74% consider environmental and social impact when
resource efficiency, and promote social responsibility. making purchasing decisions. This report presents a
According to a report by the Ellen MacArthur comprehensive baseline analysis of circularity practices
Foundation, a circular economy in the textiles in the Apparel and Textile industry in India. Based on
industry could generate $560 billion in savings extensive research and analysis of existing literature,
globally by 2030. academia, industry reports, and interviews with industry
experts and stakeholders, the report deep dives into
ABFRL has collaborated with GIZ to promote circular the overview of the Indian Apparel and Textile industry,
business practices in the Indian market. Implementing highlighting its economic significance and social and
circular solutions in the textile and apparel linear environmental challenges.
value chain not only unlocks untapped commercial
potential for existing stakeholders but also reduces There is a strong focus on waste management in the
the substantial carbon footprint of the industry. With industry, and the report offers a detailed analysis of the
GIZ’s support, ABFRL and other industry players can different types of waste generated in the production
leverage circular business principles and implement process and their impact on the environment. It also
technically superior and consumer-friendly processes. explores the current waste management practices in
Dr Naresh Tyagi the industry and identifies the gaps and challenges in
With this recent partnership, our aim is to introduce managing waste effectively.
Chief Sustainability Officer, ABFRL
globally benchmarked circular business practices in
Ashish Dikshit India. India’s textile and apparel industry is the 6th While there is support from Government agencies across
Managing Director, ABFRL largest in the world and second largest employment The Apparel and Textile industry in India is one of the the country for the cause of circularity, the efforts are still
sector. A large part of the textile waste generated oldest and largest industries in the country, contributing at very nascent stages. The report explores the current
is sent to the landfill and incinerated instead of significantly to economic growth and employment state of circularity practices in the industry, including the
being recycled or reprocessed. There is a need to adoption of sustainable materials, circular product design,
At ABFRL, we aim to collaborate, contribute, and opportunities. According to the Ministry of Textiles, as of
‘self-disrupt’ existing practices and transition to and closed-loop systems. It further tries to identify key
co-create a new movement in the Indian textile 2021, the industry accounts for 2.3% of India’s GDP and
a more circular approach. Promoting a common drivers and barriers to the adoption of circular practices
sector. Our goal is to create a platform for innovators, 13% of the country’s total export earnings. The industry
understanding is therefore crucial from a sustainable in the Textile and Apparel industry in India. Eventually,
think-tanks and industry stakeholders to develop also employs around 45 million people, making it one of
development perspective for the entire textile sector the idea of this report is to unearth approaches and
sustainable and impactful solutions that raise the largest employers in the country.
in India. Along with our partners, we aim to create strategies that companies can adopt to make circularity
awareness about textile circularity. As industry
awareness among key stakeholders to drive circular a reality in their operations. Innovation, technology, and
leaders in the Indian apparel market, we constantly Rapid growth of the industry in the past few decades
approaches, reduce waste, and create closed-loop collaboration play a big role in promoting circularity and
seek endeavours that transform the industry from a has also brought with it several environmental and social
systems. the report can provide examples of best practices for
sustainability lens. challenges. For instance, in 2017 WRI reports that the
industry was estimated to consume around 425 billion leading companies in the industry.
The state of circularity in the Indian textile and
What plagues our industry is lack of awareness on cubic meters of water per year, leading to water scarcity
apparel industry is in the nascent stages, but there We hope that this report will serve as a valuable resource
sustainable practices and price remains a significant in many areas. The production of textiles also generates
is growing awareness and initiatives to promote for policymakers, industry stakeholders, and companies
factor in purchasing decisions for many consumers. a significant amount of waste and pollution, with the
sustainability and circular practices. With this interested in promoting sustainable practices and
As such, there is a need for greater education and industry accounting for around 10% of global carbon
baseline report, we intend to begin a powerful dialog contributing to a more circular economy in India. By
awareness-raising initiatives to encourage more emissions and 20% of global water pollution.
with diverse industry stakeholders to understand the highlighting the challenges and opportunities in adopting
sustainable consumption patterns among Indian
root causes and how we can find solutions to work circular practices, we aim to provide actionable insights
consumers. Yet, there is a sliver of hope in the way the industry
through the issues in a collaborative manner. intends to create an environmental balance. In recent that can help drive progress towards a more sustainable
years, there has been a growing awareness and interest and circular future for the industry.
8 Baseline Assessment Report Baseline Assessment Report 9
