Barriers to Circular Supply Chain Implementation in Indian Textile SMEs: An Exploratory Qualitative Study

Abstract

The textile and apparel sector is a cornerstone of India’s industrial growth, employing millions and contributing significantly to exports and GDP. However, it is also resource-intensive and polluting, largely due to linear “take-make-dispose” supply chains. As environmental concerns grow, circular supply chains (CSC) have emerged to reduce waste, optimise resources, and close material loops especially crucial in textiles, given high material turnover, waste, and chemical use. Despite global momentum, research on how Indian SMEs engage with CSCs remains limited.
This study explores barriers to CSC implementation in Indian textile SMEs using an exploratory qualitative approach. Semi-structured interviews with supply chain and operations managers across 23 SMEs revealed multiple interrelated barriers: low awareness of circular principles, limited access to green technologies and financing, inadequate infrastructure, weak regulatory enforcement, and internal resistance due to perceived risks and uncertain returns. Findings highlight the need for integrated support through policy innovation, ecosystem partnerships, and capacity-building initiatives tailored to SMEs. This study contributes empirical evidence on CSC adoption in Indian SMEs and provides a foundation for policy and comparative research across manufacturing sectors.