Government to aid textile start-ups via equity fund model

Considering the huge export potential of some areas like textile, leather and toys, Government is planning to fund and provide workspace to start-ups in these sectors. The project will be tested in the textile sector where space will be provided to entrepreneurs at textile parks while funds will be given through the state-supported Textile Equity Fund.
The Ministry of Textile is working with SIDBI to launch the first state-supported, dedicated Textile Equity Fund in the next three months, which will ensure easy availability of equity for start-ups as well as expansion for smaller enterprises. Government aims to replicate the success story of the IT sector which boomed on similar models. If successful, the model will be replicated in leather and toys industries.
About 40 textile parks have already been established in the country, while another 20 were announced last year to boost the competitiveness of the sector. Textile has a share of about 14% to industrial production, 4% in the GDP and 17% in the export earnings. The sector is the second-largest employment provider after agriculture.

Month: Current Affairs - September, 2013