The number of startups in India’s textile sector has seen a steady increase over the past five years, according to Union Minister for Textiles, Giriraj Singh. In a written reply to a question in the Lok Sabha on Tuesday, Singh revealed that the number of new entities recognized as startups in the textile industry by the Department for Promotion of Industry and Internal Trade (DPIIT) has risen significantly, from 204 in 2020 to 703 in 2023, and 765 in 2024.
Under the ‘Startup India’ initiative, the government has introduced several key schemes to support startups across various sectors, including textiles. These include the Fund of Funds for Startups (FFS), the Start-up India Seed Fund Scheme (SISFS), and the Credit Guarantee Scheme for Startups (CGSS), all aimed at providing assistance to startups at different stages of their business cycle.
FFS, which was approved in 2016, focuses on catalyzing venture capital investments. It is operationalized by the Small Industries Development Bank of India (SIDBI), which provides capital to Securities and Exchange Board of India (SEBI)-registered Alternative Investment Funds (AIFs). These AIFs, in turn, invest in startups, with a requirement to invest at least double the amount received under FFS.
The SISFS provides financial assistance to seed-stage startups through incubators, while the CGSS offers collateral-free loans to startups via eligible financial institutions. The CGSS has been operational since April 1, 2023, and is managed by the National Credit Guarantee Trustee Company (NCGTC) Limited.
The minister also highlighted the government’s initiatives to strengthen the overall textile sector, including the Pradhan Mantri Mega Integrated Textile Region and Apparel Parks (PM-MITRA) scheme. This scheme aims to create a modern, integrated, large-scale industrial ecosystem, attracting investments and boosting employment in the textile sector.
Other initiatives such as the Production-Linked Incentive (PLI) scheme and the National Technical Textile Mission (NTTM) are also being implemented to generate employment and promote the growth of technical textiles.
Additionally, the Office of Development Commissioner (Handicrafts) runs schemes such as the National Handicrafts Development Programme (NHDP) and the Comprehensive Handicrafts Cluster Development Scheme (CHCDS) to support the development and promotion of handicrafts across India. These schemes include various skill development programs, including the Guru Shishya Hastshilp Prashikshan Programme (GSHPP), Comprehensive Skill Upgradation Programme (CSUP), and Design and Technology Development Workshops (DDW), aimed at enhancing skills in the handicraft sector.
(With ANI inputs)
