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Announcement
Closing the loop: circularity solutions for Indian fashion industry

Student name: Ms Pooja Chaudhary
Guide: Dr Moumita Acharyya
Year of completion: 2025
Host Organisation: Grant Thorton Bharat LLP
Supervisor (Host Organisation): Mr Mridul Bagga
Abstract:

The fashion industry, encompassing intricate production processes and a sprawling international supply chain, stands as one of the largest contributors to environmental degradation. Responsible for approximately 10% of global carbon emissions and nearly 20% of global wastewater production, the industry’s current operational model imposes significant ecological and social costs (UNEP, 2021; Ellen MacArthur Foundation, 2017). From the use of toxic chemicals in dyeing processes to the heavy reliance on fossil-fuel-derived synthetic fibers and the vast volumes of clothing discarded into landfills often in developing countries the impacts are multifaceted and severe.

At the core of these issues lies the industry's dependency on a linear economic model, where materials are extracted, processed, used, and disposed of, resulting in unsustainable levels of resource consumption and waste. In contrast, the Circular Economy (CE) paradigm proposes a sustainable alternative that emphasizes waste minimization, resource efficiency, and the continual use of materials. Despite its promising benefits including potential global economic gains of up to $560 billion annually by 2030 through resource recovery and waste reduction (as per Ellen MacArthur Foundation, 2012) adoption of CE practices within the fashion sector remains limited, particularly in emerging economies like India.

India’s fashion and textile industry, contributing around 2% to the national GDP and employing over 45 million people (Ministry of Textiles, GoI, 2023), is a vital economic sector but also a substantial source of environmental stress. The country ranks third globally in textile production, yet it faces serious sustainability challenges due to a linear, resource-intensive production model. This model generates elevated levels of water consumption, carbon emissions, and textile waste approximately 1 million tonnes of textile waste is generated annually in India, of which only 20-25% is recycled (Indian Textile Journal, 2022).

From the excessive use of freshwater in dyeing processes (estimated at 200 litres per kg of fabric) to the growing volume of post-consumer waste dumped in landfills or incinerated, the sector's environmental footprint is alarming. Furthermore, the outsourcing of waste to low-income regions and the informal nature of India’s recycling systems exacerbate social and ecological burdens.

The Circular Economy (CE) framework offers a regenerative solution by focusing on product longevity, reuse, repair, and recycling. While globally gaining traction, CE adoption in India remains in its infancy, hindered by systemic barriers such as fragmented supply chains, lack of regulatory enforcement, and limited consumer awareness.

This research investigates the potential of CE integration in the Indian textile sector through a mixedmethods approach involving literature reviews, surveys, and interviews with manufacturers, retailers, and consumers. Findings highlight the growing awareness among stakeholders, yet underline persistent challenges such as high capital costs, technological gaps, and behavioural inertia.