A Blockchain-enabled Risk-Resilience Framework for Indian Post-Consumer Textile Recycling MSMEs
Implementing Organization
Indian Institute Of Technology Delhi
Principal Investigator
Dr. Astha Sharma
Indian Institute Of Technology Delhi
asthasharma.iitr@gmail.com
Project Overview
The Indian textile sector, though a global leader, faces major challenges in managing post-consumer textile (PCT) waste. Circular economy practices like recycling and reuse are critical, but progress is hindered by fragmented supply chains, especially in collection, sorting, and recycling. Key bottlenecks include lack of digitalization, traceability, risk visibility, and coordination among MSMEs and informal stakeholders such as collectors, sorters, and aggregators, who are central to India’s PCT recycling ecosystem.
To address this, the project proposes the development of a blockchain-enabled risk-resilience framework designed to enhance process transparency, track material flows, and map critical risks across the multi-actor PCT supply chain. The study will focus on framework architecture, decision protocols, and risk modelling techniques that integrate blockchain principles (such as immutable data recording, smart contract-based validation rules) into a practical and scalable roadmap for MSME clusters. The framework will also identify how blockchain-backed digital twins and IoT data streams could theoretically support real-time monitoring of process performance, risk indicators, and resilience capacities (absorptive, adaptive, restorative). These digital building blocks will be aligned with MSME operational realities, focusing on risk mitigation, system reliability, and adaptability to future disruptions such as supply uncertainties, policy changes or demand shocks.
The project will employ a structured, mixed-methods approach. Qualitative tools such as extensive interviews, will capture ground-level realities and stakeholder perceptions. Quantitative risk-resilience modelling, particularly Multi-Criteria Decision-Making and Exploratory Factor Analysis, will prioritize risks, map resilience gaps, and propose actionable blockchain-linked intervention pathways specific to India’s socio-economic and industrial context.
The research strongly aligns with India’s Viksit Bharat Abhiyan 2047, focusing on sustainable industrial growth, technological modernization of MSMEs, formalization of informal sector, and advancement of circular economy practices. By generating a validated digital transformation framework rooted in risk-resilience logic and blockchain traceability principles, this project will contribute to national goals on resource efficiency, green growth, and industrial competitiveness.
Expected outputs include a blockchain-enabled framework for MSME digitalization, policy recommendations for Ministry of Textiles and other governmental agencies, and capacity-building guidelines for MSMEs and informal stakeholders. Additionally, cluster-specific case studies from prominent recycling hubs, will provide actionable insights for nationwide replication.
Ultimately, this project seeks to lay the foundation for sustainable, technologically empowered, and resilient PCT sector in India, aligning the industry with the aspirations of Viksit Bharat 2047.