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India boosts circular textiles with new HSN codes and record-keeping


India’s Ministry of Textiles in India is taking significant steps to enhance the circular textile industry and monitor the trade of recycled textiles within the country. One of its key initiatives involves the establishment of a comprehensive record-keeping system. To achieve this, the Ministry has introduced Harmonized System of Nomenclature (HSN) codes specifically designed for categorizing recycled textile products. These codes will be expanded to cover various products, including yarn, fabric, garments, and waste.

The implementation of HSN codes is expected to empower the government in regulating and modernizing the flow of recycled textiles, ensuring adherence to sustainability standards and certifications. Additionally, the government plans to conduct a thorough study on the generation of both pre- and post-consumer waste to assess the volume of recycled textiles produced domestically. Furthermore, there are plans to collaborate with other nations to introduce six to eight-digit HSN codes encompassing recycled yarn, fiber, and fabric.

Representatives from the Confederation of Indian Textile Industry have commended the government's initiative, stating that these measures will position India as a leader in the management and regulation of recycled textiles trade. According to estimates by the IMARC Group, the textile recycling market in India is projected to witness substantial growth, increasing from the current $8308.7 million to $375 million by 2028. This growth is anticipated to occur at a Compound Annual Growth Rate (CAGR) of 3.4% between 2023 and 2028.



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