EU, Indian Ministry of Textiles launch seven projects targeting handicraft industry

Funded by the EU, with EUR 9.5 million (INR 85.5 crores) grant, these initiatives across the entire value chain aim to foster inclusive growth, resource efficiency and sustainability in the Indian textile sector along with driving livelihoods, and women economic empowerment.

These seven projects, spanning the entire value chain, will be implemented across nine states across India - Assam, Andhra Pradesh, Telangana, Uttarakhand, Uttar Pradesh, Odisha, Jharkhand, Bihar, and Haryana, with 35,000 direct beneficiaries, including 15,000 MSMEs, 5,000 artisans, 15,000 farmer-producers, over the next 3 to 5 years.

As many of these projects will also support local communities and industries, it is expected to economically empower around 200,000 women, contributing to a more inclusive, sustainable, and thriving textile ecosystem, read a statement issued by EU.

This project builds on the EU's ongoing collaboration with India on sustainability and circular economy, aligning with the Ministry of Textiles' "Sustainable Bharat Mission for Textiles."

The funding, part of the EU's Global Gateway Strategy, complements the ongoing EU-India Resource Efficiency Circular Economy initiative, co-funded by the German Federal Ministry (BMUV), and is executed jointly with the Ministry of Environment, Forest, and Climate Change, Government of India, and being implemented by GIZ.

The projects, to be run in partnership with  government agencies and private sector partners, have been designed to help preserve Indian cultural heritage in textiles while promoting economic self-sufficiency through enhanced innovation, competitiveness, and market linkages.

India’s textile and apparel sector is key and more than 45 million are employed in this field of which 60% are stated to be women.

Despite its projected share in India’s export earnings, challenges such as emissions, energy usage, water consumption and low level of recycling persist.

Textiles’ Toolkit, prepared along with GIZ, for fostering Circular Economy and Resource Efficiency in the sector was also launched today.

Speaking on the occasion of the launch, the Minister Counsellor and Head of Cooperation of the EU Delegation to India, Franck Viault said, “While fast fashion dominates global trends, both the EU and India have been making serious effort to make the textile industry more sustainable."

He said: "India's rich textile heritage is internationally acclaimed, particularly in Europe. By merging tradition with innovation and technology, India's textile sector can leapfrog into a sustainable future. As a key partner, the EU is committed to supporting India's circular economy agenda, sharing best practices, and promoting environmentally sustainable practices in this vital sector.”

Information on projects

The 7 newly launched projects will be implemented by Humana People to People India, Deutsche Welthungerhilfe EV, Stiftelsen Varldsnaturfonden WWF, Professional Assistance for Development Action, Network for Enterprise Enhancement and Development Support, Foundation for MSME Clusters and Intellecap Adivsory Services Pvt. Ltd.

The projects will work on a range of products such as production and promotion of natural dyes, bamboo craft, handlooms, shawls, traditional handicrafts and textiles with a view to enhance production, branding, and market access.

Increasing income opportunities of women, facilitating collaborations among artists, producers, CSOs, government institutions, and market stakeholders remains an overarching goal of all projects.

In addition, reducing negative impact on the environment, promoting circularity and resource efficiency will be integrated in all project activities.