The Government of India plans to fast-track growth in the technical textiles sector by expanding the Rs 10,683 crore Production Linked Incentive (PLI) scheme for textiles. The expansion includes integration of 17 new product categories including a wider array of Man-Made Fiber (MMF) apparel and specialized technical textiles. Confirming the development, Giriraj Singh, Union Minister for Textiles, emphasizes a strategic shift toward high-value manufacturing segments. To facilitate broader participation from mid-sized enterprises, the ministry has reduced the minimum investment threshold by 50 per cent and lowered incremental turnover requirements from 25 per cent to 10 per cent.

Strengthening industrial capacity through fiscal calibration

This policy revision addresses long-standing industry requests for a more inclusive framework, particularly as India aims for a US$ 350 billion textile market by 2030. As of late 2025, the scheme has already attracted 84 new proposals envisaging investments of Rs 10,789 crore. By including niche segments like geo-textiles and medical textiles, the government intends to reduce import dependency and capitalize on the 8.3 per cent CAGR observed in domestic consumption. Industry experts suggest, the integration of these products will shield manufacturers from the volatility seen in traditional cotton cycles, providing a stable fiscal environment for long-term capital expenditure.

Enhancing global competitiveness amidst trade shifts

The expansion coincides with the operationalization of PM MITRA parks across seven states, creating a synergistic ecosystem for large-scale manufacturing. With India’s textile exports reaching US$ 37.75 billion in FY25, the upgraded PLI 2.0 is expected to generate approximately 86,740 new jobs while positioning the nation as a viable alternative to East Asian manufacturing hubs. While the 11 per cent import duty on certain fibers remains a challenge, the move toward ‘Kasturi Cotton’ and MMF diversification is designed to ensure that Indian garments maintain price parity in the U.S. and EU markets, even amidst fluctuating global logistics costs.

An apex federal body in India responsible for policy formulation and infrastructure development across the textile value chain, the Ministry of Textiles manages key initiatives like the PLI scheme and PM MITRA parks to boost exports and employment. Historically a cotton-centric regulator, the Ministry is currently driving a transition toward synthetic fibers and sustainable manufacturing.