what is GREEN THREADS?
Green Threads is a four-year EU-funded initiative (2025–2028) focused on strengthening India’s textile recycling clusters and reinforcing their role in global circular value chains.
The project centres on three major recycling hubs, Panipat, Amroha, and Bhojpur, home to more than 14,000 MSMEs and approximately 250,000 workers. By supporting cluster resilience and helping MSMEs navigate evolving international requirements, Green Threads contributes to more transparent, competitive, and future-ready textile systems.
PARTNERS
Green Threads is implemented in collaboration with the Foundation for MSME Clusters, Copenhagen Business School, Friedrich-Naumann-Stiftung, and the Small Industries Development Bank of India .
The initiative is funded by the European Union.
why PANIPAT, AMROHA AND BHOJPUR?
Panipat is one of India’s most significant textile manufacturing and recycling clusters, generating $1.7 billion in annual exports — nearly half of which is destined for European markets — while simultaneously processing large volumes of post-consumer textile waste imported from the EU. Together with clusters in Amroha and Bhojpur, it reportedly accounts for nearly 60% of India’s recycled textile waste and supports livelihoods for over 250,000 workers, predominantly from economically marginalised communities. For a global fashion industry under mounting pressure to deliver on its circularity commitments, these clusters represent critical operational infrastructure.
New EU policies, including the Ecodesign for Sustainable Products Regulation and Digital Product Passport requirements, are reshaping expectations around traceability and accountability, in ways that MSME-dominated recycling clusters are currently lacking the institutional capacity to meet. Supporting MSMEs in adapting to these developments is essential to ensuring continued access to international markets and strengthening inclusive participation in the global fashion system.
It is against this backdrop that the Green Threads project seeks to strengthen the capacity and visibility of these North Indian recycling clusters — ensuring they are prepared for an evolving regulatory environment and recognised as central actors in a just and circular global textile economy.
PROJECT approach
Green Threads is built around five interconnected objectives. Together, these strands aim to enhance long-term competitiveness, transparency, and international recognition of India’s recycling clusters.
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Development and adoption of a Sustainable Cluster Brand
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Implementation of a Traceability Mechanism for Textile Waste
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Catalysing adoption of responsible and resource-efficient production practices
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Increasing MSME access to green financing
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Strengthening the policy ecosystem for climate resilience at national and international levels
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CONTACT us
Do you want to contribute to strengthening India’s textile recycling clusters? We welcome collaboration with industry organisations, brands, policymakers, financial institutions, researchers and other stakeholders committed to advancing circular textile systems. We invite you to share thoughts with us.
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