Fashion
Indian textile players hail Budget’s ESG & circularity thrust
Industry stakeholders said the Budget signals a transition away from volume-driven growth towards a value-led, low-carbon and traceable textile ecosystem, supported by initiatives such as the Text-ECO initiative, the National Fibre Scheme, Samarth 2.0, and sustainability-linked capacity building.
Indian textile industry has welcomed the Budget for its strong focus on sustainability, circularity and responsible manufacturing.
Industry leaders said the measures signal a shift towards value-led, low-carbon and traceable growth.
Initiatives such as Text-ECO, Samarth 2.0 and the National Fibre Scheme are seen as strengthening competitiveness, skills and sustainable sourcing across the value chain.
Shruti Singh, Country Director–India at Canopy Planet, said, “This Budget creates enabling conditions for India to lead in manufacturing of low carbon textile fibres and paper packaging. Investing in circular material ecosystems can meet business ESG goals, create domestic fibre security and global export competitiveness,” she said. Singh added that as demand grows across textiles, packaging and paper-based applications, the real test will lie in responsible sourcing. “For companies linked to forest-based supply chains, this is a moment to strengthen traceability, reduce deforestation risk, and move sustainability from intent to execution,” she noted.
From a fashion brand perspective, Amar Nagaram, co-founder of Virgio, said the Budget clearly links sustainability with innovation and design-led growth. “India’s next phase of growth will be driven by the convergence of design, technology and sustainability. The emphasis on sustainable textiles, MSME scale-up, AI-led innovation and design education reflects a long-term vision to move Indian manufacturing up the global value chain,” he said. Nagaram added that the policy direction supports responsible production, data-driven decision-making, and positions India as a credible global hub for future-ready fashion and lifestyle businesses.
At the manufacturing end, Sabhari Girish, chief sustainability officer at Sulochana Cotton Spinning Mills, Tiruppur, said that sustainability and circularity receiving prominence in the Budget is encouraging for the sector. “Circularity and sustainability taking a prominent spot in the Budget speech is a positive signal. The announcement of Text-ECON will help Indian textile companies showcase their environmentally friendly contributions to the world,” he said. Girish noted that upcoming FTAs with the UK and EU are expected to sharpen the focus on sustainability, adding that Samarth 2.0 will play a critical role in skilling the workforce with updated technologies across the value chain, from fibre to garments.
He also pointed out that the National Fibre Scheme could enhance the quality and global competitiveness of Indian-made fibres, though capital-intensive modernisation will require a clear funding roadmap. “Adopting best practices needs more support, and a proper roadmap will help indigenous fibres take centre stage,” Girish said, while welcoming the proposal to upgrade sports goods manufacturing as a boost for R&D and technical textiles.
Industry experts said the Budget’s sustainability-led approach aligns closely with stricter environmental regulations in markets such as the EU and UK, and could strengthen India’s positioning as a responsible, compliant and future-ready sourcing destination.
Fibre2Fashion News Desk (KUL)