India generates an astounding 70.73 lakh tonnes of textile waste annually, posing both an environmental challenge and a business opportunity. At the MSME Sparks 2026 event, Devansh Peshin, Regional Program Manager at Enviu, highlighted the potential for creating markets and jobs from this waste. Enviu, based in the Netherlands, has initiated programs in Europe, Asia, and Africa to tackle textile waste, focusing on India as a key player in this initiative.
### Enviu’s Approach to Textile Waste
Enviu’s strategy involves identifying inefficiencies within the textile waste value chain and establishing businesses to fill these gaps. Over the past four years, Enviu has collaborated with seven MSMEs in India across 14 cities, working closely with textile clusters like Tiruppur, Karur, and Panipat. This collaboration has successfully diverted 4.4 million kg of textile waste from landfills and created 2,900 green jobs, predominantly for women waste workers. These efforts not only address waste management but also empower individuals like Krishna, a third-generation waste picker in Bengaluru, who transitioned from informal work to managing a business with Enviu’s support.
### Challenges in Textile Recycling
The textile recycling industry in India primarily deals with cotton, using mechanical recycling methods. However, mixed fabrics containing polyester and elastane pose significant challenges, as do the institutional wastes from sectors like hospitality and healthcare. These limitations have prompted Enviu to support ventures targeting polyester recycling and the management of institutional textile waste. Peshin suggests a paradigm shift: viewing textile waste not as a problem but as an asset that can fuel a reuse movement and shared economy.
### Economic Viability and Future Prospects
Despite the potential for market creation, the economics of textile waste recycling remain challenging. Peshin noted that only 39% of textile waste currently generates positive returns for waste management entities, with a mere 2% entering recycling pathways. The majority, between 55% and 70%, ends up in landfills or is incinerated. According to a Ministry of Textiles report, the textile recycling market in India is projected to grow to $3.5 billion by 2031, potentially creating one lakh new green jobs if post-consumer waste recycling is effectively scaled.
The path forward for India’s textile waste management sector involves overcoming technological and economic hurdles. For founders and investors, the key will be to develop scalable models that can handle diverse fabric types and integrate waste into a circular economy. The next step is to watch whether new policies and business models emerge that can streamline these processes and make textile waste recycling both economically viable and environmentally sustainable.








