The Indian textile industry is one of the oldest and largest sectors in the country, contributing significantly to GDP, employment, and exports. The sector is known for its high-water consumption, chemical use, and waste production. Issues include water pollution, high energy usage, and hazardous waste.This study uses a structural equation modeling-based analytical framework to examine the causes and effects of eco-friendly practices in the Indian textile industry. Using a Google form survey and easy sampling, 230 people made up the sample. This research looks at five different hypotheses on how industrial eco-friendly practices are affected by environmental issues, circular economy principles, regulatory compliance, industrial 5.0 technology, and social responsibility programs. The results indicate that while circular economy principles revealed a statistically negligible link, environmental considerations, regulatory standards, Industry 5.0 technologies, social responsibility efforts, and eco-friendly practices suggest strong positive relationships. The findings have significant significance for the Indian textile industry, as they highlight the role that environmental restrictions, technical improvements, and social responsibility have in promoting sustainability.