The Union Textiles Ministry has announced a significant boost for about 150 Indian startups involved in the production of technical textiles. These startups will receive grants of up to Rs 50 lakhs each as part of the Rs 375 crore allocation for the fiscal year 2025 from the National Technical Textiles Mission (NTTM).
This move comes amidst India’s ongoing negotiations of free trade agreements (FTAs) with several countries, which could potentially lower import duties on manufactured items. To safeguard against the influx of substandard goods, the country aims to support its indigenous startups engaged in technical textiles production.
India holds a prominent position in the global textile and apparel market, ranking as the world’s third-largest exporter in the sector. The country is anticipated to maintain this status, with textile exports projected to reach $65 billion by the fiscal year 2026.
According to a report by Klynveld Peat Marwick Goerdeler International Limited (KPMG), India’s technical textiles market ranked fifth globally in 2021-2022, with a market size of $21.95 billion. This market has experienced significant growth of 8-10% annually over the past five years, with the government aiming to accelerate this growth to 15-20% in the next five years.
In a bid to facilitate the growth of startups, the Ministry has relaxed the royalty cap on this scheme. Startups interested in availing the benefits of the scheme are required to deposit 10% of the total fund allocation in advance. While 10 startups are set to be approved next week, the remaining firms will undergo qualification phases over the next few months.
Gaurav Duraisamy, director of Tailor & Circus, a startup specializing in innerwear made from eucalyptus tree fibers, expressed enthusiasm for the textiles ministry’s initiative. He believes that this initiative will empower startups to transform their concepts into reality and looks forward to participating in the scheme.
Furthermore, the Centre plans to introduce new quality control orders (QCOs) for various textile products, including technical, protective, and build-tech textiles, to curb the inflow of substandard imports, particularly from China. The government aims to bring over 2000 products under the QCO in the coming years, with products like bedsheets, pillow covers, and fencing nets already falling under its purview.
