Centre to fund 150 startups with ₹50 lakh each for developing advanced technical textiles

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₹50 lakh each to 150 startups that are engaged in making technical textiles such as Kevlar and Spandex, said two people aware of the development. The ministry will also not seek any share of the profits from the business that is generated.

The funding is part of a ₹375 crore allocation for FY25 from the National Technical Textiles Mission (NTTM).Technical textiles such as Kevlar, Spandex, Nomex and Twaron have application in sectors such as aerospace, defence, automobiles, healthcare, construction and agriculture.As per a KPMG report, the Indian technical textiles market is the 5th largest in the world and stood at $21.95 billion in 2021-22, with production amounting to $19.49 billion and imports $2.46 billion. In the past five years, the Indian technical textiles market has grown at 8-10% per annum and the government aims to accelerate this to 15-20% over the next five years.The global technical textiles market was estimated at $212 billion in 2022 and is expected to reach $274 billion by 2027, growing at a CAGR of 5.2% during 2022-27, driven by increasing demand cross industries and the rapid development of new applicative products, according to the KPMG report.The government's focus on supporting startups in this sector aligns with its broader goal of promoting innovation and entrepreneurship in the country.Additionally, the textiles ministry has relaxed the royalty cap on this scheme.

Generally, every fund provider takes a percentage of the profits that the start-up earns as ‘royalty’, in return for their investment. This relaxation will make it easier for start-ups to grow, one of the people cited above said.NTTM was launched in 2020 with the aim to position India as a global leader in technical textiles by