H&M Foundation and GFA Drive Circular Textile Innovation in Panipat

Editorial TeamEditorial Team
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May 5th, 2025
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2:47 PM

Explore how the H&M Foundation and Global Fashion Agenda are transforming Panipat into a global model for circular textile innovation and inclusive growth.

Circular Innovation in Panipat’s Textile IndustryTextile waste accounts for over 92 million tonnes annually, making circularity not just an environmental goal but an operational necessity for the fashion industry. In a decisive step toward system-wide change, the H&M and Global Fashion Agenda (GFA) have partnered to accelerate sustainable innovation in Panipat, India—one of the world’s most vital textile recycling hubs. This collaboration signals a major push to integrate scalable circular models into global supply chains, combining corporate leadership with grassroots recycling and policy engagement.

Panipat: A Global Model for Circular Innovation

Panipat has long been recognized as a center for textile recycling, but recent efforts by the H&M and (GFA) aim to elevate the city into a benchmark for sustainable innovation across the apparel value chain. Hosted by the Global Alliance for Textile Sustainability (GATS), a delegation from these organizations recently toured Panipat’s waste-to-product ecosystems, exploring how local stakeholders are transforming discarded textiles into high-value products.

The visit highlighted successful examples of closed-loop systems and inclusive business models, demonstrating Panipat’s potential to inspire other global textile centers.

Key Pillars of Transformation

The discussions during the site visit focused on three strategic priorities essential for advancing circularity at scale:

  • Scaling Textile Waste Recycling: Developing new systems to increase the volume and efficiency of recycled materials.

  • Boosting Economic Returns for Recyclers: Creating business models that enhance value recovery and financial sustainability for recycling operations.

  • Empowering Workers: Improving job quality, income security, and workplace conditions for workers, especially those in the informal recycling sector.

These pillars are not only socially responsible but also support supply chain resilience, cost savings, and compliance with ESG mandates.

Strategic Partnerships Driving Systemic Change

Under the leadership of Parvinder Singh and the GATS team, Panipat is evolving from a recycling center to a sustainable sourcing hub for fashion brands worldwide. The city’s home furnishings heritage is being leveraged to build circular apparel manufacturing capabilities, aligning with global brands’ increasing demand for responsible supply chain partners.

The collaboration also aligns with GFA’s Green Threads & Weaves initiative, which aims to strengthen sustainability frameworks for SMEs in the region. By connecting international brands, policymakers, and local manufacturers, GATS is creating a replicable model for other regions seeking to integrate circularity and social equity into their textile ecosystems.

A Blueprint for the Industry’s Future

The Panipat initiative reflects broader trends reshaping the fashion industry:

  • Transparent supply chains backed by data and traceability

  • Inclusive growth models that prioritize workers’ rights

  • Innovative recycling technologies that reduce waste and resource consumption

These efforts are critical as brands face increasing pressure from both consumers and regulators to demonstrate circular practices and social accountability across their value chains.

CONCLUSION

The collaboration between the H&M, (GFA), and local leaders in Panipat exemplifies how strategic partnerships can catalyze systemic change in the textile industry. By focusing on scalable recycling, economic empowerment, and social responsibility, Panipat is not just addressing textile waste—it is setting a global standard for circularity and inclusive innovation. For supply chain executives and sustainability leaders, the project offers a compelling blueprint for integrating environmental stewardship and equitable growth into core business practices.