News Brief
Government To Revamp PLI Scheme, Adding New Product Lines To Support India's Textile Sector Growth
A textile cluster in India.
To support a positive growth in India’s textile sector, the Union government plans to implement corrective measures and possibly include additional product lines, such as t-shirts and innerwear, under the production linked incentive (PLI) scheme, according to a report by Mint.
Additionally, the government will extend the timeframe for applicants to establish facilities from two years to over three years.
The report indicates that the Centre intends to modify the scheme, initially approved in September 2021, to enhance its effectiveness, as it has not successfully boosted India's textile exports, which have decreased by 11.69 per cent from $16.24 billion in 2018 to $14.34 billion in 2023.
The government is also considering restructuring the PLI scheme for sectors with slow progress and may even discontinue it in areas with low investor interest and minimal advancement.
India ranks as the sixth-largest textile and clothing exporter globally, with its domestic textile and garment sector contributing approximately 2.3 per cent to the nation's gross domestic product.
The Centre introduced the PLI scheme for the textile sector with an approved budget of Rs 10,683 crore to promote the production of man-made fibre (MMF) apparel, MMF fabrics, and technical textile products.
This initiative aims to help the industry achieve scale and competitiveness. MMFs, which include viscose, polyester, and acrylic, are chemically derived, while technical textiles are a modern category used in manufacturing items like personal protective equipment (PPE), airbags, and bullet-proof vests, with applications in aviation, defence, and infrastructure.
The government has approved 64 applicants under this scheme, with a proposed investment of Rs 19,798 crore, a projected turnover of Rs 1.94 crore, and the creation of 245,362 jobs.
The first batch of applicants is expected to start receiving incentives in 2025-26.
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