India, EU Launches 7 Projects To Strengthen Textile Sector

The European Union (EU) and India’s Ministry of Textiles have launched seven new projects to strengthen India’s textile and handicraft industry. Announced on the sidelines of Bharat Tex, the initiatives are backed by a €9.5 million (Rs 85.5 crore) EU grant and aim to enhance sustainability, resource efficiency, and economic empowerment across the sector.

Spanning nine states—Assam, Andhra Pradesh, Telangana, Uttarakhand, Uttar Pradesh, Odisha, Jharkhand, Bihar, and Haryana—the projects will directly benefit 35,000 stakeholders, including 15,000 MSMEs, 5,000 artisans, and 15,000 farmer-producers over the next 3 to 5 years. Additionally, by fostering local industries and self-sufficiency, the initiative is expected to economically empower around 2,00,000 women.

The projects align with the Ministry of Textiles’ Sustainable Bharat Mission for Textiles and the EU’s Global Gateway Strategy. They complement the ongoing EU-India Resource Efficiency Circular Economy initiative, co-funded by Germany’s Federal Ministry (BMUV) and executed in partnership with India’s Ministry of Environment, Forest, and Climate Change through GIZ.

Designed to balance heritage preservation with economic advancement, the projects will involve government and private sector collaboration to enhance innovation, competitiveness, and market linkages in Indian textiles. As part of the launch, a textiles toolkit, developed in collaboration with GIZ, was also introduced to promote circular economy principles in the sector.

Franck Viault, Minister Counsellor and Head of Cooperation at the EU Delegation to India, emphasized the significance of the initiative: “India's textile heritage is globally renowned, especially in Europe. By merging tradition with technology, the sector can leapfrog into a sustainable future. The EU remains committed to supporting India’s circular economy agenda and fostering environmentally sustainable practices.”