The Ministry of Textiles is set to gauge the expansion of circular textile industry by monitoring the trade of products crafted from regenerated fibers. To facilitate the effective management of such product trades, the ministry is in the process of establishing distinct tariff codes, referred to as HSN (harmonised system of nomenclature) codes. These codes aim to assist customs authorities, policymakers, and trade organizations in enhancing their oversight of the trade in these products. Moreover, they play a pivotal role in ensuring adherence to sustainability standards and certifications.

These initiative aligns with the Circular Economy Action Plan of the European Union, introduced in 2020. This plan is designed to tackle sustainability challenges within the textile industry by evaluating both pre- and post-consumer waste generation and pinpointing its sources.

Chandrima Chatterjee, the Secretary General of the Confederation of Indian Textile Industry (CITI), emphasizes this move will provide a distinct identity to the recycling segment. According to the IMARC Group, India's textile recycling market, valued at $308.7 million in 2022, is projected to reach $375 million by 2028. The market is anticipated to grow at CAGR of 3.4 percent from 2023 to 2028.