Union Textile Ministry plans to issue an order to provide up to Rs 50 lakh each to 150 startups related to technical textiles. A person close to the development team told Mint that startups associated with the technical textile industry, such as Spandex and Nomex, will benefit from this scheme. In addition, the ministry won’t take any profit share from the business. Here, we are talking about Union Textiles Ministry to grant 150 technical textile startups Rs 50 lakh each.
This funding program is part of the Rs 375 crore allocation decided by the National Technical Textiles Mission for FY25. Technical textiles are used in various sectors and play an essential role in industries including automobiles, aerospace, defense, construction, agriculture, and healthcare. KPMG reported the Indian textile was worth $21.95 billion in 2022 with a production amount of $19.49 billion. The Indian technical textile market increased by 8 to 10 percent per annum in the past five years. The government of India is aiming to accelerate this market by 20 percent in the next five years.
The global technical textile market is predicted to increase rapidly and reach $274 billion by 2027. The technical textile sector is expected to keep growing with a CAGR of 5.2 percent till 2027 due to its increasing demand and rapid development of new products. National Technical Textile Mission was launched in 2020 to make India a global leader in the technical textile sector by innovating, promoting research, and using technical textiles in various sectors. The Indian government has been trying different schemes to position India as a leader in the technical textile industry.
The PM, MITRA parks program, was introduced to offer quality control regulation and developed 500+ standards to promote the sector. This new scheme to offer Rs 50 lakh is another step to strengthen the Indian textile industry. The interested start-ups may need to deposit 10 percent of the total allocated funds in advance, a person told Mint. The same source mentioned that 10 startups are set to be approved for next week, and the remaining startups will be selected in the next months. India is already the third largest exporter of textiles, and now the Indian textile industry is predicted to reach $65 billion by FY26.
Conclusion
Union Textile Ministry will grant Rs 50 lakh each to 150 startups working in the technical textile industry. Startups related to the technical textile industry, such as Spandex and Nomex, will benefit from this scheme, and the ministry won’t take any profit share earned from the business. This step is taken by the government to advance the technical textile sector and strengthen India’s position on the world map.
This funding program is part of the Rs 375 crore allocation decided by the National Technical Textiles Mission for FY25. The government of India is aiming to accelerate this market by 20 percent in the next five years. The global technical textile market is predicted to increase rapidly and reach the $274 billion mark by 2027. This step taken by the government will encourage many new technical textile startups to take steps and turn their concept into reality. This scheme was introduced after India negotiated free trade agreements with other countries, which will lower the import duties on manufactured goods.
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