On February 15, 2025, the European Union (EU) and the Indian Ministry of Textile jointly started seven new projects to strengthen the Indian textile and craft industry. These initiatives, financed by the EU with 9.5 million euros (around 855 million Indian rupees), were presented on the edge of the largest Indian textile fair, Bharat Tex. They aim to promote inclusive growth, resource efficiency and sustainability in the Indian textile sector and at the same time to support the livelihoods and the economic independence of women.
Implementation in nine Indian states
The projects are implemented in nine Indian states: Assam, Andhra Pradesh, Telangana, Uttarakhand, Uttar Pradesh, Odisha, Jharkhand, Bihar and Haryana. They will benefit around 35,000 people directly over a period of three to five years, including 15,000 small, small and medium-sized companies (KKMU), 5,000 artisans: inside and 15,000 agricultural producers: inside. In addition, these initiatives should promote the economic independence of around 200,000 women and thus contribute to a more inclusive and sustainable textile ecosystem.
Focus on sustainability and innovation
The projects cover a number of products, such as the production and promotion of natural dyes, bamboo trade, hand weaving chairs, scarves as well as traditional textiles and handicrafts. The aim is to improve production, branding and market access for these products. The initiatives are implemented by various organizations, including Humana People to People India, Deutsche Welthungerhilfe EV, Stiftelsen Världsnaturfonden WWF, Professional Assistance for Development Action, Network for Enterprise Enhancement and Development Support, Foundation for MSME Cluster and Intellecap Advisory Services PVT Ltd.
Orientation towards sustainability initiatives
This cooperation is part of the continuous commitment of the EU for sustainability and circular economy in India and is in line with the “Bharat Mission for Textile” of the Indian Ministry of Textile. Funding is part of the EU’s “Global Gateway” strategy and complements the current initiative for the resource and circular economy of EU India, according to the Federal Ministry for the Environment, Nature Conservation, Nuclear Security and Consumers: Interior Protection (BMUV), which is co-financed by the Federal Environment Ministry .
Official explanation
At the kick-off event, Franck Viault, advisory minister and head of the cooperation department of the EU delegation in India: “While Fast Fashion dominates global trends, the EU and India make serious efforts to make the textile industry more sustainable. The rich textile of India enjoys international recognition, especially in Europe. With the combination of tradition, innovation and technology, the Indian textile sector can make a jump into a sustainable future. As an important partner, the EU is committed to supporting the circular economy agenda of India by shaping proven procedures and promoting environmentally friendly practices in this important sector. ”
Introduction of a “textile toolkit”
In addition, the “Textiles Toolkit” developed in cooperation with GIZ was presented in the industry to promote circuit and resource efficiency.
Imports in India and effects on the fashion industry
According to Reuters, India is considering strengthening its textile and clothing industry in the next household through measures such as financial support, tariffs for important preliminary products and incentives for local production. This initiative aims to attract global retail companies that are looking for alternatives due to the political crisis in Bangladesh.
At the moment, manufacturing companies in India are faced with high labor costs and excessive regulation, the Wall Street Journal is reminiscent of what hinders the expansion of factories and drives companies into more competitive countries such as Bangladesh and Vietnam. The term “excessive regulation” may surprise, but India is actually known for its complex and often strict labor legislation. This complexity can deter investments and restrict the operational flexibility of companies.
In addition, the Indian textile industry benefits from a positive dynamic thanks to the continuous efforts to make trading. India has set up a national committee for releases of trading (NATEF) to control the implementation of WTO Convention via Trade Effecting (TFA). By shortening the time and costs for trade transactions, this initiative helps to make the Indian market for foreign investor more attractive. According to WTO, the complete implementation of the TFA could reduce the trading costs by an average of 14.3 percent and increase the world trade by $ 1 trillion per year, with developing countries being achieved the greatest profits.
By reducing tariffs to raw materials and textile machines, India could improve the competitiveness of its fashion sector, attract more foreign investments and strengthen its position on the world textile market.
This article previously appeared on fashionunited.fr and was used with the help of digital tools translated.
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