New Delhi: The Union textiles ministry plans to grant up to ₹50 lakh each to 150 startups involved in producing technical textiles such as Kevlar and Spandex, according to two informed sources.
The ministry will not claim any share of the profits generated by these businesses.
This funding is part of a ₹375 crore allocation for FY25 from the National Technical Textiles Mission (NTTM).
Technical textiles, including Kevlar, Spandex, Nomex, and Twaron, are used in aerospace, defense, automotive, healthcare, construction, and agriculture sectors.
A KPMG report indicates that India’s technical textiles market is the fifth largest globally, valued at $21.95 billion in 2021-22, with production at $19.49 billion and imports at $2.46 billion. Over the past five years, the market has grown 8-10% annually, and the government aims to increase this to 15-20% over the next five years.
Globally, the technical textiles market was valued at $212 billion in 2022 and is projected to reach $274 billion by 2027, growing at a CAGR of 5.2% from 2022-27, driven by rising demand across industries and rapid development of new products, according to KPMG.
The government’s support for startups in this sector aligns with its broader goal of fostering innovation and entrepreneurship in India.
Additionally, the textiles ministry has relaxed the royalty cap on this scheme, which usually requires startups to pay a percentage of profits as ‘royalty’ to fund providers. This relaxation is intended to facilitate growth for startups, one of the sources said.
NTTM, launched in 2020, aims to establish India as a global leader in technical textiles by promoting research, innovation, and application in various sectors.
Furthermore, the government has introduced a production-linked incentive (PLI) for textiles, the PM MITRA Parks scheme, quality control regulations, and over 500 standards to promote technical textiles.
The second source noted that startups seeking the funds must deposit 10% of the total allocation in advance. For example, to receive ₹50 lakh, a startup must deposit ₹5 lakh of its own funds, which will not be deducted from the ₹50 lakh grant.
India is the world’s third-largest exporter of textiles and apparel and ranks among the top five global exporters in several categories, with exports projected to reach $65 billion by FY 2026.
This initiative coincides with India negotiating free trade agreements (FTAs) with several countries, aiming to lower import duties on manufactured goods and protect against substandard imports.
“As of now, 10 startups are set to be approved next week, with the remaining selected in phases over the next few months,” the source said.
