International Journal For Multidisciplinary Research

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Reshoring India’s Textile Sector: Leveraging Circular Supply Chain Practices with Government Support

Author(s) Shubhrangi Tripathi, Dr. Rashmi Agrawal
Country India
Abstract Due to its significant integration into global value chains, India's textile industry has been increasingly exposed to systemic disruptions during the past years, such as geopolitical tensions, shocks caused by pandemics, and volatility in international commerce and logistics. The COVID-19 pandemic, escalating geopolitical trade frictions, and the revival of protectionist economic policies have underscored the structural vulnerabilities inherent in highly fragmented and globally dispersed sourcing models. Simultaneously, rising environmental imperatives and regulatory scrutiny have emphasized the critical need to transition toward circular supply chain paradigms that emphasize resource efficiency, waste reduction, and the establishment of closed-loop material systems. Within this evolving landscape, reshoring and supply chain localisation have emerged as strategic responses with the potential to simultaneously enhance operational resilience and enable sustainability transitions.
This study investigates the role of reshoring in advancing circular supply chain practices in India’s textile industry, with a particular focus on the mediating influence of supply chain governance structures and transparency mechanisms. Employing a qualitative, exploratory research design grounded in secondary data, the analysis synthesizes insights from academic literature, industry reports, international policy frameworks, and sectoral statistics. Findings indicate that localisation fosters a shift from transactional, contract-based governance toward more coordinated and aligned configurations, thereby strengthening transparency and traceability across material flows. These governance-enabled information infrastructures are shown to be critical enablers of circular practices such as textile waste recovery, recycling, and remanufacturing. The study contributes to the literature by reframing reshoring not solely as a cost or risk mitigation strategy, but as a structural lever for circular supply chain transformation in emerging economy contexts.
Keywords Reshoring, Supply Chain Governance, Transparency, Circular Supply Chain, Textile Industry, India
Published In Volume 8, Issue 1, January-February 2026
Published On 2026-01-19
DOI https://doi.org/10.36948/ijfmr.2026.v08i01.66952
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