Synopsis
The Indian textiles sector has seen a significant increase in recognized startups, with numbers rising from 204 in 2020 to a projected 765 in 2024. The government's Startup India initiative includes various schemes aimed at bolstering startup growth and employment in this sector.Key Takeaways
- Steady increase in textile sector startups from 204 in 2020 to 765 in 2024.
- Government's Startup India initiative supports startups through FFS, SISFS, and CGSS.
- FFS catalyzes venture capital investments via SIDBI.
- SISFS aids seed-stage startups; CGSS facilitates collateral-free loans.
- PM-MITRA and other schemes promote industrial growth and employment.
New Delhi, March 11 (NationPress) The number of new entities recognized as startups in the textiles sector each year by the Centre’s Department for Promotion of Industry and Internal Trade (DPIIT) has been consistently rising over the past five years, from 204 in 2020 to 703 in 2023, and projected to reach 765 in 2024, based on data presented in the Lok Sabha on Tuesday.
As part of the 'Startup India' initiative, the government is rolling out three flagship schemes: Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS). These schemes aim to support startups across various categories and stages of their business lifecycle, as stated by Union Minister of Textiles, Giriraj Singh, in a written response to a query in the Lower House. The FFS was established in 2016 to promote venture capital investments and is managed by the Small Industries Development Bank of India (SIDBI), which allocates capital to Securities and Exchange Board of India (SEBI)-registered Alternative Investment Funds (AIFs) that invest in startups.
AIFs benefiting from the FFS are obligated to invest at least twice the amount they receive under FFS in startups.
The SISFS offers financial support to seed-stage startups via incubators, while the CGSS facilitates collateral-free loans to startups through eligible financial institutions, operationalized by the National Credit Guarantee Trustee Company (NCGTC) Limited since April 1, 2023, as mentioned by the minister.
The government is also implementing multiple initiatives, including the Pradhan Mantri Mega Integrated Textile Region and Apparel Parks (PM-MITRA), which aims to establish a modern, integrated, large-scale, world-class industrial ecosystem to attract investments and enhance employment.
Additionally, the Production-Linked Incentives (PLI) and National Technical Textile Mission (NTTM) are two more schemes designed to boost employment within the textile sector, according to the minister.
The Office of Development Commissioner (Handicrafts) also administers two schemes: the National Handicrafts Development Programme (NHDP) and the Comprehensive Handicrafts Cluster Development Scheme (CHCDS) to foster overall growth and promotion of the handicrafts sector across the nation.
Both schemes comprise various skill development programs, including the Guru Shishya Hastshilp Prashikshan Programme (GSHPP), the Comprehensive Skill Upgradation Programme (CSUP), and the Design and Technology Development Workshop (DDW) which help create skill development opportunities in the handicraft sector, as added by the minister.
