EU And India Launch 7 Projects To Boost Indian Textiles

The European Union (EU) and the Ministry of Textiles of India, have launched seven new projects to boost India’s textile and handicraft sector. Announced on the sidelines of Bharat Tex, these projects are backed by a EUR 9.5 million (Rs 85.5 crore) grant from the EU and aim to drive inclusive growth, resource efficiency, and sustainability while supporting livelihoods and women’s economic empowerment.
Implemented across nine states—Assam, Andhra Pradesh, Telangana, Uttarakhand, Uttar Pradesh, Odisha, Jharkhand, Bihar, and Haryana—the initiatives will benefit 35,000 individuals, including 15,000 MSMEs, 5,000 artisans, and 15,000 farmer-producers over the next three to five years. With a focus on supporting local communities and industries, the projects are expected to economically empower around 200,000 women, contributing to a more sustainable and thriving textile ecosystem.
Aligned with the Ministry of Textiles’ “Sustainable Bharat Mission for Textiles,” the projects complement the EU-India Resource Efficiency Circular Economy program, co-funded by the German Federal Ministry (BMUV) and implemented by GIZ in collaboration with the Ministry of Environment, Forest, and Climate Change. The initiatives aim to preserve India’s textile heritage while enhancing innovation, competitiveness, and market access.
Despite employing over 45 million people—60% of whom are women—the Indian textile sector faces challenges such as emissions, energy and water consumption, and low recycling levels. To address these concerns, a Textiles’ Toolkit for fostering circular economy and resource efficiency, developed with GIZ, was also launched.
Franck Viault, Minister Counsellor and Head of Cooperation of the EU Delegation to India, highlighted the EU’s commitment to making the textile industry more sustainable. He noted that while fast fashion dominates global trends, India’s rich textile heritage is highly regarded, particularly in Europe, and merging tradition with innovation and technology can help the sector leapfrog into a sustainable future.
The seven projects will be implemented by Humana People to People India, Deutsche Welthungerhilfe EV, Stiftelsen Varldsnaturfonden WWF, Professional Assistance for Development Action, Network for Enterprise Enhancement and Development Support, Foundation for MSME Clusters, and Intellecap Advisory Services Pvt. Ltd. These initiatives will focus on products such as natural dyes, bamboo crafts, handlooms, shawls, and traditional textiles, aiming to enhance production, branding, and market access. The overarching goal is to increase income opportunities for women, facilitate collaborations among artisans, producers, CSOs, government institutions, and market stakeholders, and promote sustainability, circularity, and resource efficiency across all activities.