The Union Textiles Ministry intends to award grants of up to Rs. 50 lakh to 150 startups dedicated to producing technical textiles like Kevlar and Spandex, as revealed by informed sources. The ministry will forgo any share of the subsequent business profits. This funding forms part of the National Technical Textiles Mission’s (NTTM) Rs. 375 crore allotment for FY25. Technical textiles, including Kevlar, Spandex, Nomex, and Twaron, find applications in aerospace, defense, automobiles, healthcare, construction, and agriculture.
India possesses the world’s fifth-largest technical textiles market, valued at $21.95 billion in 2021-22, with $19.49 billion in production and $2.46 billion in imports, as per a KPMG report. Over the past five years, the market has grown by 8-10% annually, and the government aims to accelerate this growth to 15-20% in the next five years. The global technical textiles market was valued at $212 billion in 2022 and is estimated to reach $274 billion by 2027, driven by rising demand from various industries and the rapid development of new applications.
The government’s focus on supporting startups in this sector aligns with its broader goal of fostering innovation and entrepreneurship in the country. Additionally, the textiles ministry has relaxed the royalty cap on this scheme, making it easier for startups to grow and expand their operations.
The NTTM, launched in 2020, aims to position India as a leader in technical textiles by promoting research, innovation, and their adoption in various sectors. The government has implemented various initiatives such as a Production Linked Incentive (PLI) scheme for textiles, the PM MITRA Parks scheme, quality control regulations, and over 500 standards to further promote technical textiles.
Startups interested in availing the fund will need to contribute 10% of the total fund allocation in advance. For instance, to receive Rs. 50 lakh from the ministry, the startup must invest Rs. 5 lakh of its own funds. This amount will not be deducted from the Rs. 50 lakh grant.
The government is also exploring the development of fabric-based artificial teeth to make dental implants more affordable and accessible. This initiative involves using dental resins derived from polyester to replace expensive ceramic, polymer, and composite implants. Research is ongoing at institutions like AIIMS and IITs, while similar applications are already in use in countries like Germany and the US to reduce costs.
The move to support technical textiles startups and the broader textile industry comes as India negotiates free trade agreements (FTAs) with several countries. These agreements may reduce import duties on manufactured goods, emphasizing the need for India to safeguard against substandard imports.
India ranks among the world’s top textile and apparel exporters, with exports expected to reach $65 billion by FY 2026. The government’s initiatives aim to boost the industry’s competitiveness and innovation while ensuring the quality of imported goods.
