The textile sector in India has seen a consistent rise in new startups over the past five years. According to data presented in the Lok Sabha, the number of startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) has grown from 204 in 2020 to 765 in 2024.
This growth is largely attributed to the government’s Startup India initiative, which provides financial support and business development programs to emerging companies in the sector.
Government Support for Textile Startups
To foster the startup ecosystem, the government has launched three key schemes under Startup India:
- Fund of Funds for Startups (FFS): Established in 2016, this scheme supports venture capital investments through the Small Industries Development Bank of India (SIDBI). These funds are then invested in startups via SEBI-registered Alternative Investment Funds (AIFs).
- Startup India Seed Fund Scheme (SISFS): Provides financial assistance to startups at the seed stage through incubators, helping early-stage businesses grow.
- Credit Guarantee Scheme for Startups (CGSS): Offers collateral-free loans to eligible startups through financial institutions, making it easier for them to secure funding. CGSS has been operational since April 1, 2023, and is managed by the National Credit Guarantee Trustee Company (NCGTC).
Textile Sector Schemes Driving Growth
In addition to startup-focused schemes, the government has launched various textile industry-specific programs to promote investment and employment, including:
- Pradhan Mantri Mega Integrated Textile Region and Apparel Parks (PM-MITRA): Aims to develop modern, large-scale textile industrial parks to boost foreign investments and job creation.
- Production-Linked Incentive (PLI) Scheme: Encourages large-scale manufacturing in the textile industry to increase domestic production and exports.
- National Technical Textile Mission (NTTM): Focuses on promoting technical textiles used in sectors like healthcare, automotive, and agriculture.
Support for Handicraft Startups
The Office of the Development Commissioner (Handicrafts) has also implemented specialized schemes to promote handicraft businesses:
- National Handicrafts Development Programme (NHDP): Supports artisans through training, marketing, and infrastructure development.
- Comprehensive Handicrafts Cluster Development Scheme (CHCDS): Helps establish artisan clusters and promote local craftsmanship.
These schemes include skill development programs such as:
- Guru Shishya Hastshilp Prashikshan Programme (GSHPP)
- Comprehensive Skill Upgradation Programme (CSUP)
- Design and Technology Development Workshop (DDW)
With strong government support and an increasing number of recognized startups, the Indian textile industry is set to witness further expansion. By providing financial aid, skill development programs, and infrastructure support, the government is helping entrepreneurs turn India into a global textile hub.
