Enviu’s Devansh Peshin on building markets and jobs from India’s textile waste

New Delhi, India Jul 10, 2026 ALN: India's textile industry, a vital component of the nation's economy, is grappling with a significant environmental challenge: the generation of an astonishing 70.73 lakh tonnes of textile waste annually. This staggering figure, highlighted in a report by the Ministry of Textiles, underscores a critical issue that has largely been treated as an environmental problem rather than an economic opportunity. The implications of this waste crisis extend beyond ecological concerns, presenting a unique chance to innovate and create jobs, particularly in the context of the country's burgeoning Micro, Small, and Medium Enterprises (MSME) sector.

At the recent MSME Sparks 2026 event, which spanned five days and aimed to showcase India's MSME ecosystem, Devansh Peshin, the Regional Program Manager at Enviu, articulated this perspective. He emphasized that while textile waste poses significant challenges, it also harbors the potential for substantial business opportunities. During his presentation, Peshin discussed the barriers that hinder the scaling of circular solutions in the textile sector, advocating for a paradigm shift in how textile waste is perceived and managed.

Enviu, an organization based in the Netherlands, has established a presence across various regions, including Europe, South and Southeast Asia, and East Africa. Its mission revolves around fostering innovative solutions to social and environmental challenges. Peshin's insights at the MSME event drew on four years of fieldwork, highlighting the need for policy changes to effectively address the textile waste crisis.

Identifying the Gaps

Peshin pointed out that the textile waste issue is not confined to India; it is a global problem, with an estimated 92 million tonnes of textile waste generated worldwide each year. The complexity of this issue is exacerbated by the proliferation of lower-quality garments, the use of blended fabrics, and the rapid pace of fashion trends, all of which complicate recycling efforts. As a result, a significant portion of textile waste is either sent to landfills or incinerated, contributing to environmental degradation.

Enviu's strategy has been to identify and address the gaps within the textile waste value chain. The organization has collaborated with seven MSMEs focused on textile waste management across 14 cities in India, as well as textile clusters such as Tiruppur, Karur, and Panipat. These partnerships have been instrumental in understanding local collection, sorting, and recycling systems, enabling Enviu to develop targeted interventions.

Through these concerted efforts, Enviu has successfully diverted 4.4 million kilograms of textile waste from landfills, while simultaneously creating 2,900 green jobs, a significant portion of which have been filled by women. One illustrative example is Krishna, a third-generation waste picker from Bengaluru, who transitioned from informal waste collection to running a more profitable business after engaging with Enviu's initiatives.

Where Mechanical Recycling Stops

Despite these positive outcomes, Peshin highlighted the limitations of existing recycling systems, particularly in India. The country's recycling ecosystem primarily focuses on cotton through mechanical recycling, yet mixed fabrics containing synthetic materials like polyester and elastane remain challenging to process. Furthermore, institutional waste generated by sectors such as hospitality, healthcare, and wellness has largely evaded formal collection systems, exacerbating the waste crisis.

Recognizing these challenges, Enviu has been proactive in supporting new ventures that focus on polyester recycling, institutional textile waste management, and the promotion of textile reuse. Peshin posed an intriguing question: "If you stop thinking of textile waste as waste, but rather think of it as an asset that sits in your closet, could you build a reuse movement and a shared economy from it?" This perspective encourages a shift in mindset that could catalyze innovative solutions within the textile industry.

The Economics Still Don't Add Up

However, Peshin cautioned that the success of circular businesses hinges not only on technological advancements but also on economic viability. He noted that currently, only 39% of textile waste generates positive value for waste management enterprises. Alarmingly, a mere 2% of textile waste enters recycling pathways, while between 55% and 70% is relegated to landfills or incinerators.

During the session, a report from the Ministry of Textiles projected that the textile-recycling market could expand to $3.5 billion by 2031, potentially creating one lakh new green jobs if the proportion of post-consumer waste converted into valuable resources increases from 39% to 55%. Peshin emphasized that achieving this goal necessitates addressing the foundational aspects of collection and sorting. He advocated for the establishment of more textile recovery facilities, streamlined collection processes, and enhanced value addition during the sorting stage. Moreover, he urged waste management firms to evolve from merely collecting waste to processing it and recovering materials to create higher-value products.

Peshin believes that the next wave of circular businesses will emerge in areas such as material innovation, technical textiles, and recovery infrastructure, where there are currently few players. This presents an opportunity for entrepreneurs and businesses to pioneer solutions that can reshape the landscape of textile waste management.

Policy and Collaboration Will Determine Scale

While technological innovation is crucial, Peshin underscored that building a circular textile economy requires supportive policies, viable business models, and adequate funding. He called for tax reforms that would level the playing field for recycled products, ensuring they are taxed similarly to virgin materials. Peshin pointed out that recycled products face a significant disadvantage; they are subject to the same taxation as virgin materials, which have benefitted from decades of efficiency improvements within their ecosystems. This discrepancy creates a barrier to the growth of the recycled materials market.

Peshin also highlighted the limitations of automation in sorting and repair processes, urging the government to provide targeted support for this labor-intensive work. He advocated for an Extended Producer Responsibility (EPR) framework that incentivizes durability, recyclability, and reuse-friendly design, rather than one that solely penalizes waste after it has been produced. Such a framework could motivate manufacturers to adopt more sustainable practices while fostering a circular economy.

Greater Opportunities in Collaboration and Funding

For MSMEs, understanding their role within the textile value chain is crucial for fostering collaboration. Peshin advised entrepreneurs to identify the specific segment of the value chain they wish to engage with, as this clarity will facilitate partnerships and collaborations. He noted that funding for sustainability-focused textile ventures has become increasingly accessible, stating, "There is no shortage of capital now." He pointed to the growing interest from incubators and investors in supporting circular businesses that offer commercially viable solutions.

However, Peshin cautioned against the practice of importing textile waste. While regions such as Panipat have been known to recycle imports from countries like the EU, US, Korea, and Japan, he pointed out that only one Indian port is legally cleared for such imports, and many exports lack traceability. He asserted that India does not need to rely on imports; the domestic pre- and post-consumer waste generated within the country is more than sufficient to develop effective solutions.

Peshin emphasized that circularity should encompass both the flow of goods and the flow of information. This approach would empower waste workers and recyclers to communicate effectively with brands about the recyclability of their products. For India, the potential benefits of embracing circularity include enhanced livelihoods, reduced reliance on virgin materials, and the emergence of new MSMEs dedicated to resource recovery.

In conclusion, the opportunities arising from the textile waste crisis in India are multifaceted. They lie not only in specific interventions such as polyester recycling, institutional waste management, and reuse models but also in the broader systemic changes required to realize a circular economy. The extent to which these opportunities can be harnessed will depend on the implementation of supportive tax policies, the design of effective EPR frameworks, and the scalability of successful models currently operating in 14 cities to the more than 100 cities that remain largely untouched by these initiatives.