Unlocking Circular Potential and Empowering Circularity: Paving the Path for Circular Supply Chain Enablement in Indian Textile Industries

Abstract

The implementation of circular supply chain (CSC) practices in textile industry has gained prominence to address environmental challenges and meet increasing consumer demand for sustainability. This study explores the role of CSC in enhancing circularity within the textile supply chain by focusing on its value‐creating capabilities, particularly in data collection, monitoring, processing, and analysis. The objective of the studies is to unlock circular potential and empower circularity by developing a framework and identifying paving the path for CSC adoption in the Indian textile organizations. The literature search and the opinion of experts to identified 15 CSC enablers, and the applicability of the proposed framework is demonstrated through a case study in the Indian textile industry. The prioritization and unlocking of circular potential CSC enablers have been done by grouping them into cause‐and‐effect categories using the Fuzzy DEMATEL methodology. The findings reveal that “demand for eco‐friendly products, consumer awareness and behavior, internal stakeholder involvement and collaboration, regulatory pressures and compliance, and government incentives and subsidies” plays a pivotal role in influencing other factors within the CSC implementation. The cause group, with its systemic impact, emerges as the most critical for effective and efficient CSC implementation, while the effect group comprises practices more susceptible to influence from cause factors. The proposed framework offers a systematic, comprehensive, and structured methodology for enhancing business organizations performance through the step‐by‐step implementation of CSC. The findings of the study will support managers, practitioners, and policy makers in formulating business strategies to facilitate the effective implementation of CSC practices.