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Home » EU and India launch 7 projects to boost textile and handicraft sectors
Industry Update

EU and India launch 7 projects to boost textile and handicraft sectors

By February 18, 20252 Mins Read
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Close-up image of a lot of coils with a threads at the sewing workshop.

The projects will span nine Indian states—Assam, Andhra Pradesh, Telangana, Uttarakhand, Uttar Pradesh, Odisha, Jharkhand, Bihar, and Haryana—benefiting around 35,000 direct beneficiaries.

The European Union (EU) and India’s Ministry of Textiles have launched seven new projects to strengthen the country’s textile and handicraft industry alongside the Bharat Tex event. With Rs 850.5 million grant, these initiatives aim to drive inclusive growth, enhance resource efficiency, and promote sustainability throughout the Indian textile value chain.

The projects will span nine Indian states—Assam, Andhra Pradesh, Telangana, Uttarakhand, Uttar Pradesh, Odisha, Jharkhand, Bihar, and Haryana—benefiting around 35,000 direct beneficiaries. These include 15,000 micro, small, and medium enterprises (MSMEs), 5,000 artisans, and 15,000 farmer-producers over the next three to five years. The focus will be on promoting natural dyes, bamboo crafts, handlooms, shawls, and other traditional textiles, with a focus on improving production, branding, and market access.

Implementation will be carried out by organisations such as Humana People to People India, Deutsche Welthungerhilfe EV, WWF, Professional Assistance for Development Action, Foundation for MSME Clusters, and Intellecap Advisory Services.

This initiative builds upon the EU’s commitment to supporting sustainability and the circular economy in India, in alignment with the Ministry of Textiles’ ‘Sustainable Bharat Mission for Textiles’. It complements the EU-India Resource Efficiency and Circular Economy Initiative, co-funded by the German Federal Ministry (BMUV) and jointly implemented with the Ministry of Environment, Forest, and Climate Change, Government of India, and GIZ.

The projects aim to safeguard India’s textile heritage while fostering economic self-sufficiency by enhancing innovation, competitiveness, and market connections. A Textiles Toolkit, developed with GIZ, has been introduced to further promote circular economy practices and resource efficiency within the sector.

News source: Fibre2Fashion

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