Textile recycling India could grow into a $3.5 billion market by 2030 while creating nearly one lakh green jobs, according to a report released in New Delhi by Union Textiles Minister Giriraj Singh on March 11, 2026.
Textile recycling India expands through waste recovery networks
The report titled “Mapping of Textile Waste Value Chain in India” analysed recycling flows across the country’s textile industry.
Researchers found that Textile recycling already recovers more than 70 percent of total textile waste. This waste then moves into recycling, reuse, upcycling and downcycling processes.
India produces about 70.73 lakh tonnes of textile waste each year. Among this total, 42 percent originates from pre-consumer waste, while 58 percent comes from post-consumer disposal.
These findings show how the sector continues to grow through established collection networks and processing clusters.
India textile recycling market 2030 could strengthen circular economy
The report indicates that the India’s textile recycling market 2030 could expand significantly if recycling infrastructure improves across clusters.
Policy experts recommend building recycling facilities closer to waste generation centres. This approach may reduce transport costs and improve processing efficiency.
India’s textile sector ranks among the largest in the world. Therefore, policymakers view Textile recycling as a key opportunity to align industrial growth with sustainability targets.
The report also notes that recycling systems can strengthen circular production across the textile value chain.
Textile recycling India supported by informal collection ecosystem
India’s recycling ecosystem includes a large informal network that collects and sorts used textiles.
According to the study, about 55 percent of post-consumer textile waste avoids landfill disposal through this system. Workers recover, sort and redistribute used materials before recycling.
This network supports 40–45 lakh livelihoods, mainly women from marginalised communities involved in textile collection and sorting.
As a result, recycling also plays a role in employment generation and social inclusion.
Panipat emerging as a key recycling hub
Cluster analysis identified Panipat in Haryana as a major centre for mechanical textile recycling.
Textile waste from multiple manufacturing clusters travels to Panipat for processing. The hub has developed strong capabilities in mechanical recycling techniques.
The report also highlights efficiency within the spinning sector. Nearly 100 percent of spinning waste returns to production through closed-loop systems.
Through these developments, Textile recycling in India continues to expand alongside efforts to build a more circular textile industry.
