The Centre plans to expand the coverage of the nearly Rs 11,000-crore production linked incentive (PLI) scheme for the textile sector to include more product lines such as t-shirts and innerwear. Additionally, the government plans to extend the timeframe for applicants to set up facilities from two years to over three years.
These adjustments will help enhance the scheme's effectiveness, as it has not yet succeeded in boosting India's textile exports. From 2018 to 2023, India’s textile exports declined by 11.69 per cent to $14.34 billion from $16.24 billion.To bring the industry back on a positive growth trajectory, the government intends to implement these corrective measures.
Launched with an approved outlay of Rs 10,683 crore, the PLI scheme for the textile sector will promote the production of man-made fiber (MMF) apparel, MMF fabrics, and technical textile products. The scheme will enable the industry to achieve size and scale and become more competitive.
The government has approved 64 applicants under the scheme, with a proposed investment of Rs19,798 crore, a projected turnover of Rs1.94 crore, and the creation of 245,362 jobs. The first set of applicants is expected to start receiving incentives from 2025-26.
