Textiles & Leather Startup Grants and Funding Programs in India — October 2026
Textiles & Leather startups in India have access to a range of active grants, incubation programs, and competitions. From government-backed technology upgradation funds to innovation challenges focusing on circularity, various opportunities exist to secure funding and mentorship. This guide details seven key programs open in October 2026.
Seven active programs are currently open to Textiles & Leather startups across India, encompassing grants, incubation support, and competitions. These initiatives aim to foster innovation, upgrade technology, and promote sustainable practices within the sector.The funding landscape for Textiles & Leather in India includes support from central and state government ministries, dedicated institutional programs, and innovation challenges. These programs address various stages of startup growth, from early-stage prototyping to scaling commercial ventures, and often focus on specific sub-sectors or technological advancements.
Active Textiles & Leather Grants and Programs
| Program | Type | Deadline | Funding |
|---|---|---|---|
| Patent Reimbursement Incentives: Karnataka Startup Policy | Subsidy | Rolling | ₹2 L – ₹1 Cr |
| Innovation Voucher Program | Subsidy | Rolling | ₹3 L – ₹1 Cr |
| EDII-TN Innovation Voucher Program — AIC RAISE Hardware Cohort | Subsidy | Rolling | ₹3 L – ₹7 L |
| ATUFS — Amended Technology Upgradation Fund Scheme | Subsidy | Rolling | Varies |
| Coir Board Schemes — Coir Vikas Yojana | Subsidy | Rolling | ₹1 Cr |
| Greenovation Circularity Challenge 2026 | Competition | 31 Oct 2026 | ₹40 Cr |
| Maruti Suzuki - NSRCEL Mobility Incubation Program | Competition | Rolling | ₹10 Cr |
Amended Technology Upgradation Fund Scheme (Ministry of Textiles)
The Amended Technology Upgradation Fund Scheme (ATUFS), administered by the Ministry of Textiles, provides a Capital Investment Subsidy (CIS) to textile units for upgrading machinery. This scheme targets eligible benchmarked textile machinery across six segments of the industry. The subsidy rates vary by segment: garmenting (15%), technical textiles (15%), weaving (15%), powerloom (15%), processing (10%), yarn (10%), and handloom (25%).
To qualify, machinery must be purchased from registered manufacturers and meet the benchmarking criteria specified under the scheme. This initiative supports modernization and technological advancement within the textile sector, helping startups and established businesses enhance their production capabilities and competitiveness. The scheme's continuous nature allows for ongoing applications as businesses plan their capital investments.
Coir Board Schemes — Coir Vikas Yojana (Ministry of MSME)
The Coir Board Schemes — Coir Vikas Yojana is an umbrella initiative by the Ministry of MSME designed to develop the coir industry. It provides support through several sub-programs tailored for different needs within the sector.
Key components of the scheme include:
- Coir Udyami Yojana: Offers a 40% subsidy on project costs, up to a maximum of ₹10 lakh, for establishing coir processing units. The remaining 55% of the project cost can be secured as a bank loan, facilitating access to capital for new ventures.
- Skill development and training: Supports human resource development within the coir industry.
- Mahila Coir Yojana: Provides free foot-operated spinning wheels to women artisans, promoting self-employment and skill enhancement.
- Market promotion: Engages in activities such as organizing trade fairs and providing Coir Mark certification, aimed at increasing the market visibility and quality assurance of coir products. This program is relevant for startups focusing on coir-based textiles and products.
Greenovation Circularity Challenge 2026 (EarthON Foundation)
The Greenovation Circularity Challenge 2026, an initiative by EarthON Foundation in collaboration with Greenovation Hub and SwitchON Foundation, supports innovations in circularity. This competition specifically targets startups, SMEs, and social enterprises with solutions for plastic, textile, and food waste. Up to ₹4 crore in funding is available to selected ventures.
The challenge focuses on three core action pillars, with Textile Circularity being directly relevant for the sector. Innovations aimed at recovering, reusing, and recycling textile waste are sought. This includes solutions for waste collection, segregation, and smart sorting technologies; mechanical, chemical, and enzymatic recycling methods; and approaches for small-scale recycling of low-value textiles. The deadline for this competition is 31 October 2026.
Patent Reimbursement Incentives: Karnataka Startup Policy (KBITS)
The Patent Reimbursement Incentives: Karnataka Startup Policy provides financial support for intellectual property protection. Managed by KBITS, Government of Karnataka, this program offers up to ₹10 lakh for patent reimbursement. It is specifically for incubated startups officially registered with the Karnataka Startup Cell.
The policy aims to offset the financial burden associated with securing intellectual property rights, enabling technology-driven ventures in Karnataka to protect their innovations. For Textiles & Leather startups developing novel materials, processes, or designs, this incentive helps safeguard their intellectual assets.
Innovation Voucher Program (Tamil Nadu Technology Hub)
The Innovation Voucher Program (IVP), supported by EDII-TN and facilitated by iTNT Hub, offers grant support up to ₹10 lakh. This program is for startups and MSMEs operating in Tamil Nadu. The iTNT Hub, or Tamil Nadu Technology Hub, is a state-backed entity driving technological advancement. EDII-TN, the Entrepreneurship Development and Innovation Institute of Tamil Nadu, promotes entrepreneurship.
The IVP provides financial grants to help early-stage ventures transition from conceptual ideas to tangible products or services. Textile and leather startups in Tamil Nadu can utilize this program to develop new products, improve processes, or explore innovative solutions within their domain.
EDII-TN Innovation Voucher Program — AIC RAISE Hardware Cohort (AIC RAISE)
The EDII-TN Innovation Voucher Program — AIC RAISE Hardware Cohort is a Tamil Nadu state scheme run by EDII-TN, with AIC RAISE as the knowledge partner for its hardware-focused track. This program offers non-dilutive grants to ventures building physical products.
It features two voucher tracks:
- Voucher A: Provides ₹3 lakh to assist founders in building and validating a prototype from an early hardware idea.
- Voucher B: Offers ₹7 lakh to scale a working product toward commercial use. Beyond capital, AIC RAISE provides mentorship, technical guidance, pitch deck development, and strategic pitching support. For Textiles & Leather startups working on smart textiles, advanced manufacturing machinery, or other hardware-integrated solutions, this cohort offers a pathway to develop and scale physical products.
Maruti Suzuki - NSRCEL Mobility Incubation Program (NSRCEL, IIM Bangalore)
The Maruti Suzuki - NSRCEL Mobility Incubation Program, a collaboration between NSRCEL at IIM Bangalore and Maruti Suzuki India Limited, is a 6-month initiative designed for mobility startups. While primarily focused on the automotive sector, this program can be relevant for Textiles & Leather startups involved in specific niches such as automotive textiles, interior components, or sustainable manufacturing processes applicable to mobility solutions. Funding of up to ₹1 crore is available.
The program supports ventures past the ideation phase, from Minimum Viable Product (MVP) to growth-stage companies. It fosters innovation in areas like electric vehicles, advanced driver-assistance systems, data analytics, and sustainable manufacturing. Startups developing specialized textile or leather solutions for automotive applications may find this incubation program beneficial.
Before Applying
Eligibility criteria for these programs vary significantly and require careful review. For instance, the Patent Reimbursement Incentives are exclusively for startups registered with the Karnataka Startup Cell and undergoing incubation in the state. Similarly, the Innovation Voucher Programs by iTNT Hub and EDII-TN specifically target startups and MSMEs operating within Tamil Nadu. Textiles & Leather startups aiming for the Greenovation Circularity Challenge must demonstrate solutions for waste streams, particularly textile waste, while the Coir Vikas Yojana is dedicated solely to the coir sector.
Several programs, including the ATUFS and Coir Board Schemes, operate on a rolling application basis, allowing applications throughout the year. However, the Greenovation Circularity Challenge has a fixed deadline of 31 October 2026, requiring prompt action for interested ventures. The EDII-TN Innovation Voucher Program — AIC RAISE Hardware Cohort is specifically for hardware-focused products, which may narrow its applicability for some traditional textile and leather businesses but opens doors for those in smart textiles or manufacturing technology.
