Digital tools and circular economy in Indian textiles: A case study from Surat

The Indian textile industry, a cornerstone of the country’s economy, is facing increasing pressure to shift towards sustainable practices. This case study explores how circular economy principles, focused on waste reduction, material reuse, and resource efficiency, are being implemented within a medium-sized textile cluster in Surat, Gujarat. Emphasis is placed on the role of digital tools such as cloud-based inventory systems, IoT-enabled tracking, and automated quality control in facilitating this transition. Data for the study was collected through direct interviews with local entrepreneurs, supported by secondary insights from policy documents and sustainability reports. The findings indicate that digitalization not only enhances operational efficiency but also helps overcome barriers like supply chain fragmentation and compliance documentation. The study highlights a practical pathway for Indian MSMEs in textiles to adopt circular business models while remaining competitive. This case serves as a reference for policymakers, business incubators, and aspiring green entrepreneurs aiming for scalable sustainability in India.