Based on data presented in the Lok Sabha, the Center’s Department for Promotion of Industry and Internal Trade (DPIIT) has continuously increased the number of new entities recognised as start-ups in the textiles sector over the past five years, from 204 in 2020 to 703 in 2023 and 765 in 2024.
Union Minister of Textiles Giriraj Singh responded in writing to a question in the Lower House that the Government is implementing three flagship schemes under the ‘Startup India’ initiative: the Fund of Funds for Startups (FFS), the Start-up India Seed Fund Scheme (SISFS), and the Credit Guarantee Scheme for Startups (CGSS) to support start-ups across categories and sectors at different stages of their business cycle.
FFS was authorised and created in 2016 with the goal of accelerating venture capital investments. It is run by the Small Industries Development Bank of India (SIDBI), which supplies funds to Alternative Investment Funds (AIFs) registered with the Securities and Exchange Board of India (SEBI), which then makes investments in start-ups.
AIFs that get FFS financing must invest in start-ups at least twice as much as they were required to under FFS.
While CGSS is in place to enable collateral-free loans to businesses through qualified financial institutions, SISFS offers financial support to seed stage start-ups through incubators. According to the minister, the National Credit Guarantee Trustee Company (NCGTC) Limited is in charge of operationalising CGSS, which went into effect on 1st April 2023.
According to the minister, the Government is also carrying out a number of programs for the textile industry, including PM-MITRA parks, the PLI scheme, and the National Technical Textile Mission (NTTM).
For the overall growth and promotion of the handicrafts industry nationwide, the Office of Development Commissioner (Handicrafts) also administers two programs: the Comprehensive Handicrafts Cluster Development Scheme (CHCDS) and the National Handicrafts Development Programme (NHDP).
The minister added that both programs offer a variety of skill-development initiatives, including the Design and Technology Development Workshop (DDW), the Comprehensive Skill Upgradation Program (CSUP), and the Guru Shishya Hastshilp Prashikshan Programme (GSHPP). These initiatives aid in the development of skills in the handicraft industry.
