Govt To Fund Start-ups For Developing Advanced Technical Textiles

New Delhi, Jun 4 (KNN) The Union Textiles Ministry is planning to unveil a new initiative to promote innovation and entrepreneurship in the technical textiles sector.

As part of the National Technical Textiles Mission (NTTM), the ministry plans to provide grants of up to Rs 50 lakh each to 150 start-ups engaged in the production of technical textiles, such as Kevlar, Spandex, Nomex, and Twaron, reported Mint.

The funding, amounting to Rs 375 crore for the fiscal year 2024-25, is part of the government's broader strategy to position India as a global leader in technical textiles.

The ministry has also relaxed the royalty cap on this scheme, allowing start-ups to retain a larger share of their profits without having to pay a percentage as royalty to the fund provider.

Technical textiles, which include products like personal protective equipment (PPE) kits, masks, safety gear for firefighters and construction workers, among others, have diverse applications across sectors such as aerospace, defence, automobiles, healthcare, construction, and agriculture.

The Indian technical textiles market, currently the fifth largest globally, stood at USD 21.95 billion in 2021-22, with production amounting to USD 19.49 billion and imports valued at USD 2.46 billion.

The government aims to accelerate the growth of the Indian technical textiles market from the current 8-10 per cent per annum to 15-20 per cent over the next five years.

The global technical textiles market was estimated at USD 212 billion in 2022 and is expected to reach USD 274 billion by 2027, growing at a compound annual growth rate (CAGR) of 5.2 per cent during the period, driven by increasing demand across industries and the rapid development of new applications.

To avail the funding, start-ups will be required to deposit 10 per cent of the total fund allocation in advance.

For instance, to receive Rs 50 lakh from the ministry, a start-up must deposit Rs 5 lakh of its own capital, which will not be deducted from the grant amount.

The initiative has been welcomed by industry stakeholders, including Gaurav Duraisamy, Director, Tailor & Circus, a start-up manufacturing innerwear from eucalyptus tree fibres, who expressed interest in participating in the scheme.

In addition to the start-up funding program, the government has launched a production-linked incentive (PLI) scheme for textiles, the PM MITRA Parks scheme, introduced quality control regulations, and developed over 500 standards to promote the technical textiles sector.

Moreover, to safeguard against substandard imports, particularly from China, the government is planning to bring new quality control orders (QCOs) for textile products, including technical, protective, and build-tech textiles.

These measures are seen as crucial as India negotiates free trade agreements with several countries, which will ultimately lower import duties on manufactured items.

(KNN Bureau)