According to Union Minister for Textiles Giriraj Singh, the number of startups in India’s textile industry has steadily increased over the previous five years. The number of new entities recognised as startups in the textile industry by the Department for Promotion of Industry and Internal Trade (DPIIT) has increased dramatically, from 204 in 2020 to 703 in 2023 and 765 in 2024, Singh said in a written response to a question in the Lok Sabha on Tuesday.
The government has launched a number of important programs under the “Startup India” initiative to assist new businesses in a number of industries, including textiles. These include the Credit Guarantee Scheme for entrepreneurs (CGSS), the Start-up India Seed Fund Scheme (SISFS), and the Fund of Funds for Startups (FFS), which are all designed to help entrepreneurs at various phases of their business cycle.
The goal of FFS, which was authorised in 2016, is to stimulate venture capital investments. It is run by the Small Industries Development Bank of India (SIDBI), which lends money to Alternative Investment Funds (AIFs) registered with the Securities and Exchange Board of India (SEBI). These AIFs then make investments in startups, but they must make at least twice as much as they were given under FFS.
While the CGSS offers entrepreneurs loans without collateral through qualified financial institutions, the SISFS offers seed-stage startups financial support through incubators. Under the management of the National Credit Guarantee Trustee Company (NCGTC) Limited, the CGSS has been in operation from April 1, 2023.
The Pradhan Mantri Mega Integrated Textile Region and Apparel Parks (PM-MITRA) program is one of the government’s efforts to boost the textile industry as a whole, which the minister also underlined. In order to draw investments and increase employment in the textile industry, this plan seeks to establish a contemporary, integrated, large-scale industrial environment.
To create jobs and encourage the expansion of technical textiles, other programs like the National Technical Textile Mission (NTTM) and the Production-Linked Incentive (PLI) plan are also being put into place.
In order to aid in the growth and promotion of handicrafts throughout India, the Office of Development Commissioner (Handicrafts) also administers programs including the Comprehensive Handicrafts Cluster Development Scheme (CHCDS) and the National Handicrafts Development Programme (NHDP). In order to improve skills in the handicraft industry, these schemes include a number of skill development initiatives, such as the Guru Shishya Hastshilp Prashikshan Programme (GSHPP), the Comprehensive Skill Upgradation Programme (CSUP), and the Design and Technology Development Workshops (DDW).