The Indian government plans to expand the Production Linked Incentive (PLI) scheme for textiles to attract more investment and boost production.
The scheme currently focuses on specific MMF garments and fabrics. The Textile Ministry proposes adding over 30 new items, broadening the scope and making it easier for investors to meet turnover and investment criteria.
It also plans to extend the current two-year period for setting up operations by one more year, giving investors more time to establish their businesses. Some MMF items like T-shirts, excluded due to technical classification issues, could be included in the list.
Expanding the scope of the scheme aims to attract more investment in the sector. The existing scheme attracted only 64 applicants, leaving a significant budget surplus
The industry has requested a longer gestation period due to geopolitical challenges.
The Department for Promotion of Industry and Internal Trade (DPIIT) has compiled recommendations from various sectors, including textiles, for PLI scheme improvements. The compiled recommendations will be presented to the Cabinet for approval.
