Overview
The Foundation for MSME Clusters (FMC) organised a focused Sustainable Cluster Brand (SCB) and EU Sustainability Regulations workshop in Panipat, Haryana, on 23 September 2026. The event brought together more than 60 micro, small and medium enterprises (MSMEs), exporters and other stakeholders from the recycled‑textile cluster. FMC co‑hosted the session with its consortium partners Global Fashion Agenda (GFA) and the Small Industries Development Bank of India (SIDBI), with participation from the Center for Responsible Businesses (CRB) and Conserve India.
Purpose and Key Messages
The workshop aimed to build a common understanding of the proposed SCB criteria, sensitize participants to evolving EU sustainability and regulatory requirements, and facilitate agreement on adoption pathways. Opening remarks were delivered by Mr. Abhishek Naga, Deputy General Manager – Energy & Environment at FMC, who highlighted the strategic importance of proactive compliance for MSMEs to remain competitive in global markets, especially the European Union.
EU Market Context
Mr. Naga noted that the EU imported approximately EUR 180.5 billion worth of apparel in 2024, of which EUR 79.2 billion originated from developing countries. India’s share of EU apparel imports was around EUR 4.1 billion, rising to roughly EUR 7.0 billion when textiles, apparel and home‑textiles are combined.
Regulatory Topics Covered
Harshitha Venati, Senior Impact Manager at GFA, presented an overview of the EU Labelling Regulation. The discussion also revisited earlier workshops on the Ecodesign for Sustainable Products Regulation (ESPR), Extended Producer Responsibility (EPR) and the Waste Shipment Regulation (WSR). Devyani Hari, Senior Director at CRB, elaborated on the Digital Product Passport (DPP) and the proposed Sustainable Cluster Brand (SCB) criteria, emphasizing their role in enhancing transparency, traceability and overall sustainability performance across the textile value chain. Mr. Rakesh Vig, Manager at SIDBI, reaffirmed institutional support for the initiative.
Themes Emphasised
Participants were sensitised to the growing importance of traceability, circularity, resource efficiency and regulatory compliance as EU sustainability requirements evolve. The dialogue linked these themes directly to the practical challenges and opportunities faced by Panipat’s recycled‑textile MSMEs and exporters, underscoring the need for end‑to‑end supply‑chain transparency.
About the EU SWITCH‑Asia “Green Threads” Project
The Green Threads Project, funded under the EU SWITCH‑Asia Programme, seeks to accelerate the transition of India’s textile and apparel sector toward more sustainable, circular and resource‑efficient production practices. The project provides capacity building, policy dialogue, technical support and stakeholder engagement to help MSMEs understand emerging EU requirements (including ESPR, DPPs and WSR), improve circularity and waste management, strengthen global competitiveness and build long‑term resilience.
FMC’s Role and Track Record
FMC, a non‑governmental, not‑for‑profit public charitable trust established in 2005, supports over 300 MSME clusters and more than 100,000 artisanal and industrial units across India. It is an empanelled nodal agency for the Ministries of MSMEs and Rural Development, delivering schemes such as SFURTI and providing technical, research and evaluation support to organisations including SIDBI and KVIC. FMC has implemented multiple environment‑livelihood projects with support from agencies such as NABARD, UNIDO, UNDP, the EU, ADB and corporates like Cisco, Mahindra Finance, HCL, Yes Bank and Hindalco.
Conclusion
The Panipat workshop marked a significant step in building momentum for a Sustainable Cluster Brand and preparing Indian textile MSMEs for EU market entry under increasingly stringent sustainability regulations.