The circular economy (CE) has emerged as a promising framework to address sustainability challenges in resource-intensive industries such as textiles. However, existing CE research largely focuses on industrial textile systems in developed economies, with limited attention to traditional artisanal sectors. This study aims to explore the barriers to CE implementation in India’s handloom sector through an empirical case study of the Sualkuchi silk-weaving cluster in Assam, India.
A qualitative case study approach was adopted using semi-structured interviews with handloom artisans, owners and managers. Thematic analysis was used to identify key institutional, economic, organisational and social barriers influencing CE adoption within the sector.
The findings reveal four interrelated categories of barriers: institutional and policy constraints, economic and financial challenges, organisational and supply chain limitations and social and knowledge-related barriers. Limited institutional support, financial insecurity, fragmented supply chains and insufficient awareness of CE practices collectively hinder sustainable transitions. Cultural attachment to traditional craftsmanship and generational shifts further complicate CE adoption.
This study extends CE discourse beyond industrial textile contexts by highlighting the distinct realities of artisanal textile industries in developing economies. It contributes context-specific insights for policymakers and practitioners seeking to promote inclusive and culturally sensitive sustainability transitions in traditional craft sectors.
