India is poised to initiate tracking mechanisms for its export and import of recycled textiles, a strategic move by the Government to monitor products crafted from regenerated fibres and gauge the growth of the circular textile economy.
The Ministry of Textiles has launched the process to establish distinct tariff codes, known as HSN (Harmonised System of Nomenclature) codes, as the current codes lack provision for recycled textile products. These recycled items are presently traded under existing yarn, fabric, garment, and waste codes, as per The Economic Times report.
In the fiscal year 2022-23, India’s exports of worn clothing and rags reached US $ 134.7 million, with imports standing at US $ 381.71 million, nearly half of which originated from Bangladesh.
An official, preferring anonymity, highlighted the need to monitor recycled textiles trade, especially considering that certain countries impose bans or restrictions on their trade.
Introducing separate HSN codes specific to recycled textiles will assist customs authorities, policymakers, and trade bodies in regulating and managing these products’ trade. It will also facilitate compliance with sustainability standards and certifications.
The ministry is actively examining both pre and post-consumer waste generation to estimate the volume of such waste generated in the country.
This initiative aligns with the EU’s Circular Economy Action Plan, 2020, which highlights textiles as a significant product value chain facing sustainability challenges.
Presently, only a handful of companies involved in recycled textiles are being tracked, according to official sources.
The textile recycling market in India, valued at US $ 308.7 million in 2022, is projected to reach US $ 375 million by 2028, growing at a compound annual rate of 3.4 per cent from 2023 to 2028, according to IMARC Group.
Industry experts believe that the classification of recycled textiles will play a crucial role in providing identity to the recycling segment, offering transparency in the supply chain and tracking fashion waste and brands’ dead stock.
