India’s textile industry is one of the oldest and most significant contributors to the country’s economy.
Employing over 45 million people and contributing 7% to industrial output, this sector is a powerhouse for both exports and domestic markets. But sustaining and growing a textile business isn’t easy—especially for MSMEs.
To boost this vital industry, the government offers various textile grants and schemes designed to help businesses modernize, expand, and compete globally. In this blog, we’ll explore the key grants available for textile MSMEs and how you can benefit from them.
Why Are Textile Grants Critical in 2025?
India’s textile industry contributes:
- 7% to industrial output
- 45 million jobs
- Significant export value
But MSMEs face challenges like outdated tech, limited capital, and global competition. That’s where government grants step in—fueling modernization, sustainability, and global expansion .
Top Government Textile Grants for MSMEs
Here are some of the most popular grants and schemes aimed at uplifting the textile industry:
1. Amended Technology Upgradation Fund Scheme (ATUFS)
Goal: Support adoption of modern machinery
Incentive:
- 10–15% capital subsidy for equipment upgrades
Sectors:
- Apparel, weaving, technical textiles
Eligible: MSMEs in textile production/processing
Get funding-ready with a professional pitch deck
2. Scheme for Integrated Textile Parks (SITP)
Objective: Create infrastructure for textile clusters
Support:
- 40% grant (up to ₹40 Cr) for park development
Focus:
- Shared utilities – ETPs, warehouses, testing labs
Who Can Apply: SPVs, cooperatives, textile entrepreneurs
Secure eligibility with MSME certification
3. PowerTex India Scheme
Goal: Empower India’s power loom sector
Benefits:
- Subsidies for loom upgrades + 50% solar incentive
Target:
- Rural/semi-urban textile MSMEs
Need help applying? Visit Egniol's Government Grants page
4. National Technical Textiles Mission (NTTM)
Purpose: Promote high-value technical textiles
Grants:
- R&D, pilot plants, and testing support
Focus Areas:
- Medical, agro, geo & protective textiles
Applicants: Startups, MSMEs, and textile innovators
Planning export entry? Consider Private Limited Registration
5. Export Promotion Capital Goods (EPCG) Scheme
Objective: Boost machinery imports for export growth
Benefit:
- Zero customs duty on capital goods
Condition:
- Export obligation = 6× of duty saved
Eligibility: Export-focused textile MSMEs
Learn more about financing with NBFC loan options
How to Apply for Textile Grants
Applying for a textile grant involves several steps, but with proper planning, it can be a smooth process:
- 1. Identify the Relevant Grant: Choose a scheme that aligns with your business goals—whether it’s modernization, export, or sustainability.
- 2. Prepare Your Documents: Common requirements include:
1. Business registration certificates
2. Financial statements
3. MSME certification
4. Project reports
Pro Tip: Need help with registration? Visit our page on GeM Registration to get started. - 3. Submit Your Application: Apply via experts at Egniol, it will be quick, easy and hassle-free. They will handle everything from documenting to disbursement.
- 4. Follow Up: Keep track of your application status and respond promptly to queries if any and stay updated about disbursement.
Success Stories: Grants That Changed the Game
Green Weaves Cooperative – Gujarat: Used PowerTex to install solar looms
Energy costs dropped by 30%
Worker wages and margins improved
SmartWear Innovations – Bengaluru: Funded via NTTM
Developed anti-bacterial technical fabrics
Expanded to 3 new export markets
Want results like this? Use Egniol’s MSME loan support
Why Textile Grants Are a Game-Changer
The textile industry is the backbone of India’s economy, but it requires constant innovation and investment to stay competitive. Grants like ATUFS and SITP ensure MSMEs have the resources to modernize, reduce costs, and explore new markets.
| Benefit | Impact on Textile MSMEs |
|---|---|
| Modern Machinery | Better productivity, quality, and margins |
| Green Energy | Cost-saving + sustainability credentials |
| Export Enablement | More competitive pricing globally |
| Infrastructure Access | Shared testing & storage = faster growth |
For tailored help, explore our government loans advisory
FAQs on Textile Grants
Q1. Which textile grants support equipment modernization?
ATUFS and PowerTex India are best for machinery and looms.
Q2. Can I get funding as a startup?
Yes, under NTTM and SITP, startups are eligible if the DPR and setup are viable.
Q3. Are these grants available pan-India?
Yes, though some (like SITP) may prioritize specific clusters or states.
Q4. What is the approval time?
Most grants take 30–90 days depending on documentation and DPR strength.
Final Thoughts: Stitch Success into Your Textile Venture
Textile grants in India are more than just subsidies—they’re tools to modernize, scale, and compete globally.
Need guidance? Let Egniol help you structure your project, secure certification, and submit a winning grant application.
Contact Egniol Today We’ll handle the process while you focus on production.
Disclaimer: The information presented in this blog is sourced from various online platforms and government portals.