Government Grants for Startups in the Technical Textile Sector 2023
The government on Tuesday unveiled a new programme that would provide companies and people working on technical textiles development up to Rs 50 lakh in financial support. The program’s goals are to increase exports and generate high-value jobs.
The GREAT program—which stands for Grant for Research and Entrepreneurship Across Aspiring Innovators in Technical Textiles—will be carried out by incubators like the Indian Institute of Technology (IIT), National Institutes of Technology (NITs), textiles research associations, and centres of excellence.
The programme is designed to assist 100–150 entrepreneurs. “We would provide grant-in-aid funding of up to Rs 50 lakh without the need for royalties or equity for a period of up to 18 months. The incubatee need only contribute a minimum of 10%, according to Rajeev Saxena, joint secretary for the ministry of textiles.
According to him, the startup’s formation date must be less than five years old. The programme focuses on assisting people and businesses in converting prototypes into technology and goods, including commercialization.
Agrotextiles, building textiles, geotextiles, homes textiles, medical textiles, mobile textiles, packaging textiles, protective textiles, and sports textiles are a few of the technical textiles subsectors that will be the focus of the grant.
Within the following two weeks, an online site will be created to accept applications for the project, which will be in accordance with the National Technical Textiles Mission.
According to a formal announcement, the textile ministry will also provide the incubators an additional 10% of the overall grant-in-aid. It was said that the programme will focus on fostering the growth of the technical textiles startup ecosystem, particularly in specialised fields like smart textiles, biodegradable and sustainable textiles, and high-performance and speciality fibres.
IIT Delhi, NIT Jalandhar, NIT Durgapur, NIT Karnataka, National Institute of Fashion Technology, Institute of Chemical Technology, Anna University, PSG College of Technology, and Amity University are among the institutions that would receive financial support under the programme.
The programme aims to encourage innovation in the specialised field of technical textiles, which has the potential to generate high-value employment and increase exports. The incubator and the chosen startups will initially sign a memorandum of understanding outlining who would control any developed intellectual property.
The textiles ministry approved 26 institutes’ plans to upgrade their training and laboratory facilities in order to create and offer technical textile courses and degree programmes.
It granted 151 crore rupees to these institutions. 45 crore would go to privately held institutions, and 105 crore will be handed to institutions in the public sector.
The ministry has previously announced two quality control operation systems (QCOs) for 31 technical textile goods, including 19 geotextiles and 12 protective textiles, which will go into effect on October 7, 2023. In September 2023, Saxena stated, QCOs for 28 items, including 22 agrotextiles and 6 medical textiles, are also anticipated to be granted.
Technical textiles are engineered materials specifically designed for particular functionalities, such as resistance to heat, chemicals, or water, and offer various industrial applications ranging from medical and automotive to construction.
As this industry expands in scope and scale, there’s a growing realization of its economic and social importance. Recognizing the need for innovation and scalability, governments worldwide are now offering numerous grants and funding options to startups in this field.
Technical textiles often require specialized materials and processes, thus driving innovation and economic diversification.This sector has the potential for high-value job creation, from research and development to manufacturing and sales.Many countries aim to be at the forefront of this technology, and promoting startups can make them more globally competitive.Technical textiles can have applications in healthcare, environmental conservation, and disaster management.
These are often small, one-time grants intended for initial feasibility studies and basic research.Larger grants targeted at specific projects, usually requiring detailed plans and milestones.
Governments may offer tax incentives for R&D in technical textiles.Soft loans with low-interest rates, or loan guarantees to reduce the risk for lenders.Reduced costs in property leases, utilities, or reduced import duties on specialized machinery.
For projects focused on eco-friendly materials or processes.To help startups enter the international market.Usually limited to private limited companies or equivalent.
Many grants target companies less than five years old.Some grants require proof of profitability or at least financial sustainability.Projects should generally align with the nation’s strategic goals in technology, employment, and innovation.
Research various grants and their requirements.Prepare a detailed business plan, financial projections, and other necessary documents.This may involve online submissions, interviews, and presentations.Once approved, there’s often a strict schedule for milestones and reporting.
Government grants are a powerful means for promoting innovation and entrepreneurship in the technical textiles sector. They offer startups the financial leeway to push the boundaries of existing technologies and to foster innovation in developing new applications.
Understanding the types, eligibility criteria, and application process is crucial for securing these grants. Startups aiming for long-term success should thoroughly research available opportunities and align their business goals accordingly.
By leveraging these grants, startups can mitigate the inherent financial risks involved in business ventures and make substantial contributions to both the economy and society at large. With the technical textile market expected to expand significantly in the coming years, now is the opportune time to take advantage of these funding opportunities.
