AbstractEssential to human survival, textiles, and clothing have witnessed a meteoric rise in production and consumption worldwide, evolving from basic needs to everyday commodities. A more disposable consumer culture is evident in the projected global apparel demand of $2.6 trillion by 2025. However, a primary environmental concern—fashion waste—has emerged as an outcome of lifestyle changes. The fashion industry is the most wasteful consumer industry in the world, mainly due to its linear (take, make, and waste) model. Several solutions have been proposed to address the waste created by this industry, with the circular economy (CE) being considered the most appropriate choice. This study explores the challenges unique to the Indian fashion industry in adopting CE practices to handle textile waste. The study gathers insights from 22 industry stakeholders by adopting a qualitative approach. It offers challenges spanning political, economic, social, technological, environmental, and legal (PESTEL) dimensions. The investigation emphasized that the most pressing challenge is economics, highlighting the emphasis on company profits, followed by technical and political challenges. The study recommends addressing these challenges through capacity building, clear guidelines, innovation, technological advancement, and multi-stakeholder collaboration platforms.