India: UNIDO-GEF Textile Project Accelerates a Circular Shift
- Salma Ochieng
- Mar 17
- 3 min read
Updated: Mar 20
In a landmark move toward sustainable industrial transformation, the United Nations Industrial Development Organization (UNIDO), in partnership with the Global Environment Facility (GEF) and India’s Ministry of Textiles, has launched a pioneering initiative to overhaul the nation’s textile sector.
Unveiled during the UNIDO Bharat Tex panel discussion (PD45) in New Delhi, this initiative directly addresses the environmental challenges of traditional textile manufacturing, marking a significant milestone in India’s commitment to decarbonizing its textile industry. As one of the world’s largest textile producers, India's shift toward sustainability holds global implications, positioning it as a blueprint for economies striving to embed circularity into industrial ecosystems.
With key forums like the Circular Design Summit 2025, where global leaders convened in March to rethink manufacturing and design, the momentum for sustainable transformation has never been stronger. Discussions reinforced the urgency of integrating circular design principles, accelerating the adoption of resource-efficient, waste-free production systems- a vision that aligns with India’s textile reforms and the broader EU-India Sustainable Development Partnership.
Pioneering Circularity in Textiles: The UNIDO-GEF Textile Project
The textile industry is among the most resource-intensive sectors, with high water consumption, energy demand, and chemical usage. Recognizing these challenges, the UNIDO-GEF Textile Project is designed to eliminate hazardous chemicals, optimize resource use and promote circular manufacturing practices.
A key feature of the project is its focus on eco-friendly crop solutions, minimizing environmental degradation while enhancing textile supply chain efficiency. By transitioning to biodegradable materials, closed-loop recycling systems and cleaner production processes, the initiative ensures that sustainability drives, rather than hinders, industrial growth. This approach aligns with global best practices, where forward-thinking economies are integrating Extended Producer Responsibility (EPR) policies and green financing to accelerate circularity.
At the core of this transformation is collaboration. The partnership between UNIDO,GEF, and the Indian Ministry of Textiles provides the necessary infrastructure, policy guidance and financial mechanisms to scale up sustainable textile manufacturing. Pilot initiatives currently underway in Tirupur- India’s textile hub, demonstrate how transitioning to non-toxic, resource-efficient production benefits both the environment and local economies.
These efforts are further reinforced by parallel global sustainability initiatives, including the GEF-UNEP Integrated Programme on Supply Chains initiative, which focuses on reducing hazardous chemicals in the fashion industry. Through strategic interventions, circular product design and supply chain reform, these initiatives are shaping a future where sustainability and profitability go hand in hand.
A Collaborative Path to Circular, Cost-Effective and Chemical-Free Manufacturing
As India strengthens its competitive position against global markets like China, the urgency to decarbonize textile production is undeniable. With initiatives like the UNIDO-GEF Textile Project, the industry is steadily advancing toward resource-efficient, low-impact and circular manufacturing models.
According to Professor Seshadri Ramkumar(Texas Tech University-USA), India's textile sector is well-structured but requires expansion of its product range, covering natural, synthetic and blended textiles. In his Textile Outlook India cover article, Optimism in the Textile Sector: Way Forward, he emphasizes that cost-effective sustainable processes and product diversification must be explored.
Professor Ramkumar highlights a critical need for strategic planning, especially during this current period of weak demand, to strengthen the sector beyond spinning. To counter China’s competitive advantage in product style and availability, he suggests that India leverage its talent pool, particularly institutions like the National Institute of Fashion Technology (NIFT), to develop innovative textile products and enhance its converting sector- a move that will pay off in the near to mid-term.
India’s leadership in this space sends a powerful signal to the global textile market: eco-conscious business practices are no longer a choice- it is an economic imperative.