In response to the challenging situation faced by the Indian textile and apparel industry owing to the new 50 per cent tariff imposed by the US administration, the Indian government has reopened the application process for the production-linked incentive (PLI) scheme.
The Union Ministry of Textiles announced it would invite fresh applications for MMF (man-made fiber) apparel, MMF fabrics, and technical textiles. The application portal will be open until August 31 of this year. While the scheme is intended to help the textile industry, it may not benefit the garment sector much, as cotton garment manufacturing is not included.
Approved in September 2021 with a budget of Rs 10,683 crore (~$1.22 billion), the PLI scheme was designed to boost the production of man-made fiber products. Although 80 applicants have been approved, the response has been described as lukewarm, with some committed investors not moving forward. The government aims to disburse Rs 500 crore (~$57.09 million) in incentives during the current fiscal year.
