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Government to Provide Rs.50 lakh Grants to Startups in the Technical Textiles Sector


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The Union textiles ministry is planning to provide grants of up to ₹50 lakh each to 150 startups that specialize in producing technical textiles like Kevlar and Spandex. The ministry will not seek any share of the profits from these businesses. This funding is part of a ₹375 crore allocation for the National Technical Textiles Mission (NTTM) in the fiscal year 2025.

Technical textiles, such as Kevlar, Spandex, Nomex, and Twaron, have applications in sectors like aerospace, defense, automobiles, healthcare, construction, and agriculture. According to a KPMG report, the Indian technical textiles market is the 5th largest in the world, valued at $21.95 billion in 2021-22. The government aims to accelerate the growth of this market by 15-20% over the next five years, as it has been growing at a rate of 8-10% per annum in the past five years.

The global technical textiles market was estimated at $212 billion in 2022 and is expected to reach $274 billion by 2027, growing at a CAGR of 5.2% during 2022-27. The government’s focus on supporting startups in this sector aligns with its broader goal of promoting innovation and entrepreneurship in the country.

To facilitate the growth of startups, the textiles ministry has relaxed the royalty cap on the funding scheme. Typically, fund providers take a percentage of the startup’s profits as ‘royalty’ in return for their investment. This relaxation will make it easier for startups to grow.

The NTTM, launched in 2020, aims to position India as a global leader in technical textiles by promoting research, innovation, and the use of technical textiles in various sectors. The government has also introduced initiatives like the production linked initiative (PLI) for textiles, the PM MITRA Parks scheme, quality control regulations, and over 500 standards to promote technical textiles.

Startups interested in availing the fund will need to deposit 10% of the total fund allocation in advance. For example, a startup seeking ₹50 lakh from the ministry must deposit ₹5 lakh of its own money. This amount will not be deducted from the ₹50 lakh fund. The approval process for the startups will be conducted in phases over the next few months.

In related news, the government is planning to introduce new quality control orders (QCOs) for textile products, including technical, protective, and build-tech textiles, to regulate substandard imports from China. Technical textiles include PPE kits and masks, while protective textiles include safety kits for firefighters and construction workers. The government aims to bring over 2,000 products under the QCO in the coming years.

India is the world’s third-largest exporter of textiles and apparel and ranks among the top five global exporters in several textile categories. The country’s textile and apparel exports are expected to reach $65 billion by FY 2026. These developments are crucial as India negotiates free trade agreements (FTAs) with various countries, which may lead to lower import duties on manufactured items, requiring India to be vigilant against substandard imports.

The queries sent to the textiles secretary, spokesperson of the textiles ministry, and the Startup Association of India have not been answered at this time.

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