Investigating Circularity in India's Textile Industry: Overcoming Challenges and Leveraging Digitization for Growth

Abstract: India's growing population and economy have significantly increased the demand and consumption of natural resources. As a result, the potential benefits of transitioning to a circular economic model have been extensively discussed and debated among various Indian stakeholders, including policymakers, industry leaders, and environmental advocates. Despite the numerous initiatives, policies, and transnational strategic partnerships of the Indian government, most small and medium enterprises in India face significant challenges in implementing circular economy practices. This is due to the lack of a clear pathway to measure the current state of the circular economy in Indian industries and the absence of a framework to address these challenges. This paper examines the circularity of the 93-textile industry in India using the C-Readiness Tool. The analysis comprehensively identified 9 categories with 34 barriers to adopting circular economy principles in the textile sector through a narrative literature review. The identified barriers were further compared against the findings from a C-readiness tool assessment, which revealed prominent challenges related to supply chain coordination, consumer engagement, and regulatory compliance within the industry's circularity efforts. In response to these challenges, the article proposes a strategic roadmap that leverages digital technologies to drive the textile industry towards a more sustainable and resilient industrial model.