The workshop, organised by the Foundation for MSME Clusters (FMC) in collaboration with consortium partners Global Fashion Agenda (GFA) and the Small Industries Development Bank of India (SIDBI), aimed to build understanding and facilitate common agreement and acceptance among MSMEs and exporters on the proposed SCB criteria for subsequent adoption. It also sought to sensitise participants to evolving sustainability and regulatory requirements in global markets, particularly the European Union.
The session included participation from key stakeholders such as the Center for Responsible Businesses (CRB) and Conserve India.
The workshop opened with remarks by Abhishek Naga, Deputy General Manager, Energy & Environment, FMC, who stressed the importance of MSMEs proactively adapting to evolving global sustainability standards to enhance their competitiveness in international markets. He highlighted the opportunity presented by the EU market, noting that the region imported approximately EUR 180.5 billion worth of apparel in 2024, of which EUR 79.2 billion came from developing countries. India’s share stood at around EUR 4.1 billion in apparel imports alone and nearly EUR 7.0 billion when textiles, apparel and home textiles were included.
Harshitha Venati, Senior Impact Manager, Global Fashion Agenda, shared insights on the EU Labelling Regulation. A central part of the session was an in-depth discussion on the regulation, along with a recap of earlier workshops covering the Ecodesign for Sustainable Products Regulation (ESPR), Extended Producer Responsibility (EPR) and Waste Shipment Regulation (WSR).
Devyani Hari, Senior Director, CRB, further examined the Digital Product Passport (DPP) and the proposed Sustainable Cluster Brand (SCB) criteria, highlighting their role in driving transparency, traceability and improved sustainability performance across the textile value chain.
The occasion was also attended by Rakesh Vig, Manager, Small Industries Development Bank of India (SIDBI), whose presence reaffirmed institutional support for the initiative.
Participants were sensitised to the growing importance of traceability, circularity, resource efficiency and regulatory compliance, particularly as EU sustainability requirements continue to evolve. Discussions linked these developments to the real-world challenges and opportunities facing Panipat’s recycled textile MSMEs and exporters, underscoring the need to strengthen sustainable practices and demonstrate end-to-end supply chain transparency.
More than 60 MSMEs, exporters and stakeholders actively participated in the session, contributing to discussions on SCB adoption, energy efficiency, circularity and alignment with emerging global sustainability standards.
The Green Threads Project, supported by the EU SWITCH-Asia Programme, aims to accelerate the transition of India’s textile and apparel sector towards more sustainable, circular and resource-efficient production practices.
As global markets, particularly the European Union, introduce and strengthen sustainability-related requirements, MSMEs face increasing expectations to demonstrate compliance, transparency and environmental responsibility across their supply chains.
The project focuses on capacity building, policy dialogue, technical support and stakeholder engagement to help MSMEs understand emerging EU sustainability requirements, including ESPR, Digital Product Passports (DPPs) and WSR; improve circularity, waste management and sustainable product practices; strengthen their competitiveness in global markets; and build long-term resilience through sustainable and resource-efficient business models.
The Foundation for MSME Clusters (FMC) is implementing the project in India, with a focus on supporting MSME clusters, particularly textile hubs such as Panipat and Amroha, in responding to the global transition towards greener and more sustainable manufacturing.
FMC’s engagement reflects its long-standing commitment to supporting MSMEs in adopting improved business and environmental practices, accessing emerging market opportunities and strengthening their long-term competitiveness.
The Foundation for MSME Clusters (FMC) is a leading non-governmental, not-for-profit public charitable trust established in India in 2005. FMC has made remarkable strides in fostering sustainable livelihoods and environmental progress through its innovative cluster development approach. Its work spans more than 300 MSME clusters, supporting over 100,000 artisanal and industrial units, ranging from household operations to medium-sized production entities.
As an empanelled Nodal Agency with the Ministries of MSMEs and Rural Development, FMC extends support to prominent schemes like SFURTI and is also providing technical, research and evaluation support to organisations such as SIDBI and KVIC. FMC has implemented multiple projects on environment and livelihoods with support from agencies including NABARD, UNIDO, UNDP, EU and ADB, as well as major corporates such as Cisco, Mahindra Finance, HCL, Yes Bank and Hindalco.
The Panipat workshop brought together MSMEs, exporters and institutional stakeholders around proposed sustainable cluster branding criteria and the regulatory changes shaping access to global markets, placing traceability, circularity, resource efficiency and EU sustainability readiness at the centre of discussions.
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