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From waste to worth: Self-Help Groups in India advance circular economy and climate action   

October 28, 2025
Image: Women producing and selling their own upcycled products. © Drimson Fernandes 

Empowering communities through circular economy solutions 

Through the India Waste Management project, the Mitigation Action Facility is strengthening Self-Help Groups (SHGs) and informal sector workers by equipping them with entrepreneurial skills, financial access, and opportunities for alternative livelihoods. This initiative goes beyond improving waste management systems; it directly enhances social and economic empowerment of marginalised communities, particularly women in the informal sector. 

Training courses for housewives. © Drimson Fernandes

Building opportunities for informal workers 

In Trichy, women from the informal waste workforce have long been at the frontline of waste collection and segregation, often with limited recognition, social protection, or stable incomes. To address these challenges, the project facilitated the formation of SHGs and connected informal workers to welfare schemes, training opportunities, and entrepreneurship support. 

In Goa, women and housewives received training in stitching cloth bags using donated textiles – a sustainable alternative to single-use plastic (SUP) bags. The project enabled these women to produce and sell upcycled cloth bags, providing both environmental and economic benefits. 

From training to transformation: key highlights 

Skill development workshops: More than 180 informal workers were trained in textile upcycling and mat-making. Participants learned to transform discarded textiles into functional products such as pouches, handbags, and mats; earning up to INR 500 per day through home-based production. 

In Panaji, 30 women were trained in designing, stitching, and marketing upcycled cloth bags. They are now producing and selling their products independently and are in discussions with the local municipality to secure sales spaces at community events and local markets. 

Access to welfare schemes: Women from the informal sector in Trichy were successfully registered under government welfare initiatives such as the TAHDCO (Tamil Nadu Adi Dravidar Housing & Development Corporation Ltd) Welfare Cards, Free Sewing Machine Scheme, and Kalaignar Magalir Urimai Thogai (State Government social security programme). These schemes provide seed capital, equipment, healthcare, and financial subsidies. 

Entrepreneurship and market linkages: Through the project’s Enterprise Development Programme (EDP), over ten SHG-affiliated waste workers received training in financial literacy, pricing, and record-keeping – enabling them to manage small-scale businesses sustainably. 

SHG members also showcased their upcycled products at local exhibitions such as Uzhavar Santhai, gaining confidence, exposure, and new market connections. 

Training courses for housewives in Goa enabling women to produce and sell upcycled products. © Drimson Fernandes 

Voices from the field 

Before the training, I only saw waste as something to collect and sell for daily survival. Now, as part of my SHG, I am creating bags and mats from textile scraps. It gives me dignity and a steady income,”

SHG participant, Trichy. 

Looking ahead 

The project’s integrated approach – combining technical training, welfare support, and entrepreneurship development – has laid a strong foundation for SHGs and informal workers in Trichy and Panaji. 
Looking forward, the initiative aims to deepen partnerships with local textile industries and e-commerce platforms to ensure that SHGs and informal groups continue to thrive while contributing to sustainable waste management and circular economy solutions. 

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