The Confederation of Indian Textile Industry (CITI) has partnered with the International Trade Centre (ITC) to launch a capacity-building initiative aimed at preparing small and medium enterprises (SMEs) in India’s textile and apparel sector for the European Union’s Corporate Sustainability Due Diligence Directive (CS3D). The initiative is funded by the EU and aims to enhance the sustainability readiness of Indian textile and apparel exporters, particularly in light of the proposed India-EU Free Trade Agreement (FTA).
The CS3D, adopted in 2024, requires companies operating in the EU to identify, prevent, and mitigate adverse human rights and environmental impacts within their operations, subsidiaries, and value chains. This directive is likely to set expectations for suppliers outside the EU, including Indian companies that export to the EU. The CITI-ITC partnership aims to support Indian textile and apparel SMEs in meeting these expectations and enhancing their export growth.
As part of the partnership, CITI and ITC organized a sensitization workshop in Delhi to raise awareness about the CS3D and introduce a pilot project and online tool prepared by ITC to help industry stakeholders assess their preparedness to comply with the regulation. ITC also conducted a Training of Trainers (ToT) for select CITI staff to equip them with practical knowledge on the use of the CS3D Supplier Preparedness Diagnostic tool.
The partnership is significant, as most companies in India’s textile and apparel sector are MSMEs, and enhancing their sustainability readiness is crucial for achieving the target of textile and apparel exports worth $100 billion by 2030. CITI chairman Ashwin Chandran expressed delight at the partnership, stating that it would help Indian companies capitalize on the opportunities arising from the proposed India-EU FTA.
The initiative is also expected to support the growth of India’s textile and apparel sector, which is a significant contributor to the country’s economy. By enhancing the sustainability readiness of Indian textile and apparel exporters, the partnership aims to increase their competitiveness in the global market and support the government’s goal of increasing textile and apparel exports. Overall, the CITI-ITC partnership is a significant step towards promoting sustainability and export growth in India’s textile and apparel sector.