The India textile recycling market size reached USD 328.3 Million in 2024. The market is expected to reach USD 427.2 Million by 2033, exhibiting a growth rate (CAGR) of 2.82% during 2025-2033. The market growth is attributed to increasing environmental concerns, government support for sustainable practices, rising awareness about waste management, the growing demand for eco-friendly products, innovations in recycling technologies, increasing textile waste generation, and a shift towards circular economy models in fashion and apparel industries.
Textile recycling refers to the method of reprocessing and reusing fibrous waste materials, scraps, and old clothes. The most common sources of these materials are carpets, discarded clothes, tires, furniture, footwear, and other non-durable goods like sheets and towels. Textile recycling offers economic and environmental benefits, such as preventing the use of chemical dyes, reducing water and land pollution, and minimizing dependence on virgin fibers. As a result, it finds extensive application in various end-use industries across India.
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Rising environmental concerns, in confluence with the escalating demand for recycled textiles to reduce waste incineration, depletion of raw materials and heavy industrial discharges from textile mills, represent one of the primary factors bolstering the market growth in India. Moreover, various recycling companies, along with non-government organizations (NGOs), are undertaking initiatives to promote textile recycling in the country. However, the outbreak of the coronavirus disease (COVID-19) and subsequent lockdown restrictions imposed by the Government of India has halted operations temporarily. The market in the country is anticipated to recover once normalcy is regained.
Government Support in the India Textile Recycling Market
Government initiatives are playing a crucial role in shaping India's textile recycling market. The implementation of supportive policy frameworks, such as the Prime Minister Mega Integrated Textile Regions and Apparel (PM‑MITRA) parks scheme, is central to this effort. The Ministry of Textiles has approved the development of seven PM‑MITRA parks with a total investment of INR 4,445 Crore to establish world‑class, end‑to‑end textile clusters. These integrated parks are expected to leverage India's "5 F" vision (Farm‑to‑Fibre‑to‑Factory‑to‑Fashion‑to‑Foreign). It aims to create world-class textile hubs in multiple states, such as Uttar Pradesh, where a park is being built in Lucknow. These parks are designed to provide the infrastructure necessary to support sustainable textile practices, including recycling. By incentivizing investment in circular economy practices, the PM‑MITRA scheme seeks to promote recycling-friendly ecosystems, such as textile waste sorting and fiber recovery. In addition, the introduction of Extended Producer Responsibility (EPR) guidelines is creating a regulatory framework that encourages producers to take responsibility for the life cycle of their products. Global regulatory frameworks like the EU's EPR and California's textile waste laws further pressure Indian stakeholders to invest in sustainable practices, influencing Indian textile producers, manufacturers, and recyclers to adopt circular methods.
Hyperspectral Imaging and Deep-Learning for Automatic Fiber Classification
In the textile recycling industry in India, the integration of hyperspectral imaging and deep learning for fiber classification is a key trend. Recent advancements, such as Near-Infrared (NIR) imaging, offer a non-destructive method for sorting textiles based on fiber composition. Hyperspectral imaging can detect material-specific absorption patterns across different wavelengths, making it easier to identify and separate cotton, polyester, wool, and blends during the recycling process. A research article published in May 2025 reports recent advances in AI-driven textile sorting, emphasizing the use of hyperspectral imaging, near-infrared spectroscopy, and machine learning models to improve the accuracy and efficiency of fiber-type identification. The study highlights key challenges such as detecting blended fibers and the need for large, annotated datasets, and proposes hybrid technological models that integrate multiple AI and imaging methods. It concludes that further research and real-world implementation of these technologies are essential to scaling textile-waste sorting and supporting circular-economy goals. In India, where textile waste is increasing rapidly, this technology is especially valuable. It allows for large-scale sorting with minimal human intervention, reducing labor costs and increasing recycling efficiency, which aligns with the growing demand for sustainable textile practices within the country.
Textile Recycling Technologies in India
In India, advanced textile recycling technologies such as smart automation pipelines are revolutionizing the recycling process. Robotics and spectral imaging, combined with digital-twin frameworks, are used to develop high-speed sorting systems that can process large volumes of textile waste more efficiently. The use of autonomous AI systems is one such technological breakthrough, allowing for real-time decision-making during sorting and recycling. These smart technologies enhance precision, ensuring that fabrics are accurately identified and separated according to material type and quality. India's textile industry is increasingly adopting these technologies as part of a larger strategy to reduce textile waste and increase the reuse of fibers. As recycling becomes more automated and precise, it opens new opportunities for scaling operations while meeting the country's growing demand for sustainable textile products. The rise of robotics in textile recycling is also helping address labor shortages in the recycling sector.
AI and Machine Learning in Circular Economy Practices
AI and machine learning technologies are driving significant transformations in the circular economy of India's textile industry, particularly in recycling processes. Industry reports indicate that approximately 34% of textile waste generated in India is currently being reused. These advanced technologies play a key role in enhancing the sorting, grading, and recycling of textiles by analyzing large datasets related to material properties. Machine learning algorithms help optimize the recycling process, ensuring more efficient identification and separation of textile waste, thus improving the quality of recycled materials and reducing contamination. These systems can predict and optimize the recycling process by continuously learning from incoming textile waste streams. AI-powered platforms can automate the sorting process, significantly reducing human intervention and improving the overall efficiency of recycling operations. Companies in India are integrating these technologies to streamline operations and ensure that recycled textiles are processed with minimal contamination. AI's role in India's circular textile economy is gaining prominence, as the country's textile industry looks to enhance sustainability and reduce environmental impact. The integration of Industry 4.0 technologies, such as IoT and real-time monitoring, further amplifies the benefits of AI, creating smarter, more sustainable textile recycling systems.
The market encounters several challenges but also offers great opportunities. A major challenge is the absence of standardized recycling facilities, which prevents effective sorting, collection, and processing of textile wastes. Also, lack of an effective supply chain for recycled items prevents the use of recycling on a large scale. In addition, there is a lack of public knowledge about textile waste and recycling trends, causing poor consumer and manufacturer participation. Funding limitations and the expense of modern recycling technologies hinder broad-scale implementation. However, there are opportunities for investment and innovation within the market. With government schemes such as the PM-MITRA parks scheme, opportunities exist to establish state-of-the-art recycling plants. In addition, the increasing demand for green products is an opportunity for companies to leverage circular economy concepts in business. With the embedding of AI, machine learning, and automation, India's textile recycling industry can be made more efficient and scalable and serve environmental as well as economic requirements.
IMARC Group provides an analysis of the key trends in each sub-segment of the India textile recycling market report, along with forecasts at the country and regional level from 2025-2033. Our report has categorized the market based on product type, textile waste, distribution channel and end use.
Breakup by Product Type:
Breakup by Textile Waste:
Breakup by Distribution Channel:
Breakup by End Use:
Breakup by Region:
The competitive landscape of the industry has also been examined along with the profiles of the key players.
Report Features | Details |
---|---|
Base Year of the Analysis | 2024 |
Historical Period | 2019-2024 |
Forecast Period | 2025-2033 |
Units | Million USD |
Segment Coverage | Product Type, Textile Waste, Distribution Channel, End Use, Region |
Region Covered | North India, West and Central India, South India, East India |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
The India textile recycling market was valued at USD 328.3 Million in 2024.
We expect the India textile recycling market to exhibit a CAGR of 2.82% during 2025-2033.
The rising adoption of textile recycling, as it offers various economic and environmental benefits, including preventing the use of chemical dyes, reducing water and land pollution levels, minimizing dependence on virgin fibers, etc., is primarily driving the India textile recycling market.
The sudden outbreak of the COVID-19 pandemic had led to the implementation of stringent lockdown regulations across the nation, resulting in the temporary halt in numerous production activities for textile recycling.
Based on the product type, the India textile recycling market has been divided into cotton recycling, wool recycling, polyester & polyester fiber recycling, nylon & nylon fiber recycling, and others. Currently, polyester & polyester fiber recycling exhibits a clear dominance in the market.
Based on the textile waste, the India textile recycling market can be categorized into pre-consumer textile and post-consumer textile, where pre-consumer textile holds the majority of the total market share.
Based on the distribution channel, the India textile recycling market has been segmented into online channel and retail & departmental stores. Currently, retail & departmental stores exhibit a clear dominance in the market.
Based on the end use, the India textile recycling market can be bifurcated into apparel, industrial, home furnishings, non-woven, and others. Among these, apparel accounts for the largest market share.
On a regional level, the market has been classified into North India, West and Central India, South India, and East India, where North India currently dominates the India textile recycling market.