Linking Research, Policy, and Practice
in India's Textile Recycling Industry
Transforming Indian textile recycling clusters into hubs of circular textile production
Through the EU Switch-Asia project, Green Threads, MSC researchers led by Professor Peter Lund-Thomsen are working with Indian and European partners to ensure that the global transition to sustainable fashion supports – rather than undermines – livelihoods, recycling capacity, and environmental protection in the Global South.
From Global Research to Local Impact
India is one of the world’s major hubs for recycling used clothing and textiles. Large volumes of garments from the European Union, the United States, Japan, and Korea are imported into the country, sorted, and transformed into recycled fibres and yarn that are then used in the production of home textiles and other products. These products are exported again to Europe and North America or sold domestically at affordable prices, enhancing purchasing power for low-income consumers.
At the centre of this system are thousands of micro, small, and medium-sized enterprises (MSMEs), which provide employment and income for workers from underprivileged backgrounds. Yet these clusters also face serious challenges. Workers are often exposed to occupational health risks from outdated machinery that generates fibre dust, and many firms lack the resources and systems needed to document material origins, ensure traceability, and meet emerging sustainability standards.
MSC research traced used clothing flows from the EU and North America into four interconnected recycling clusters in India – Kandla, Panipat, Bhojpur, and Amroha. This mapping revealed both the clusters’ central role in global textile value chains and their urgent need for social, economic, and environmental upgrading.
These findings became a cornerstone for the Foundation for MSME Clusters (FMC) design of a major development intervention under the EU SWITCH-Asia programme. The programme is now being implemented across three of the clusters – Panipat, Bhojpur, and Amroha – demonstrating how research-based insights can be translated into concrete action.
Responding to a Changing Sustainability Landscape
The Green Threads project is set against the backdrop of major regulatory changes in the European Union. MSC research has shown that awareness of upcoming EU sustainability legislation remains very low among recycling MSMEs. Most firms are currently unable to systematically document the origins of the raw materials used in recycled fibres, and they lack the digital infrastructure and financial resources needed to meet future compliance requirements.
This creates a serious risk that well-intentioned sustainability policies in Europe could unintentionally exclude Indian recyclers from export markets, threatening jobs, export earnings, and global recycling capacity.
A Solution-Oriented Research Partnership
Under the Green Threads project, a partnership of institutions – including FMC, CBS, the Global Fashion Agenda (GFA), and other collaborators – is pursuing a solution-oriented approach aimed at the economic, social, and environmental upgrading of the Panipat recycling cluster and related hubs.
Within this collaboration, the MSC research team plays a key role in connecting European stakeholders with local actors in India. One concrete outcome has been the engagement of the Global Fashion Agenda in the Panipat cluster, while policy advice on how to design an intervention has been provided to the H&M Foundation, as the H&M Foundations intends to in improving working conditions, sustainability practices, and upgrading efforts in the Panipat cluster.
This combination of academic research, civil society engagement, and private foundation support illustrates how universities can act as bridges between knowledge production and practical change. The project is thus an example of the potential of academic research to translate into direct societal impacts. By tracing global clothing flows, identifying sustainability risks, and translating research insights into concrete interventions, CBS seeks to contribute to real-world improvements in Indian recycling clusters through close collaboration with civil society organisations and other collaborators.
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About the Green Threads project
Green Threads: Enhancing Sustainability in India's Textile Recycling Clusters, is part of the SWITCH-Asia programme, funded by the European Union and aiming to ‘promote Sustainable Consumption and Production (SCP) in the region’ (read more on the programme website). As part of the Green Threads project, research from the Department of Management, Society and Communication at Copenhagen Business School, conducted by Professor Peter Lund-Thomsen and his research team, is intended to help to transform one of the world’s most important textile recycling hubs toward a ‘sustainable, circular, and climate-resilient model’ (read more on the project webpage).
About the MSC research team
Peter Lund-Thomsen, Professor, Uzma Rehman, External Lecturer and Rachel Alexander, Visiting Researcher
About European Union regulatory changes
Under the European Green Deal, the EU is introducing a wide range of sustainability initiatives, including digital product passports, corporate sustainability due diligence requirements, and expanded sustainability reporting obligations.
These measures aim to improve product traceability, prevent environmental harm, and protect human rights across global value chains. However, while large textile and garment groups in India often have dedicated staff and resources to meet such requirements, MSMEs in recycling clusters are far less prepared.
The CBS team is producing two research papers examining the sustainability communication and traceability challenges faced by the Panipat textile recycling cluster. The findings will provide insights for brands, suppliers, legislators, NGOs, trade unions, government agencies, and international organisations seeking to strengthen sustainability communication and improve traceability practices within the cluster.