Government approves Production Linked Incentive (PLI) Scheme for Textiles

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The government of India has approved the Production Linked Incentive (PLI) Scheme for Textiles.

Must Read: About Production-Linked Incentive(PLI) Schemes
About the PLI Scheme for textiles

Objective: 

  1. To ​​attract investments in the production of in-demand textile products like man-made fibre (MMF) fabric, garments and technical textiles.
  2. To make Indian textiles more competitive in international markets.

Duration of the Scheme: Five Years

Features of the PLI Scheme for textiles

Incentives: Under the scheme, two types of investment are possible with a different set of incentive structures:

  1. First Type: Any person, (which includes firm/company) willing to invest a minimum of ₹300 Crore in Plant, Machinery, Equipment and Civil Works (excluding land and administrative building cost) to produce products of Notified lines (MMF Fabrics, Garment) and products of Technical Textiles, shall be eligible to apply for participation.
  2. Second Type: In this, any person, (which includes firm/company) willing to invest a minimum of ₹100 Crore shall be eligible to apply for participation.

Priority Areas: Under the scheme, priority will be given for investment in Aspirational Districts, Tier 3, Tier 4 towns and rural areas. Hence, industries will be incentivized to move to backward areas.

Significance of the PLI Scheme for textiles

The scheme will lead to a fresh investment of more than Rs.19,000 crore and will create additional employment opportunities for more than 7.5 lakh jobs in this sector.

The scheme will promote the production of high-value MMF fabrics, Garments and Technical Textiles in the country.

The scheme will positively impact especially States like Gujarat, UP, Maharashtra, Tamil Nadu, Punjab, AP, Telangana and Odisha

Moreover, the textiles industry predominantly employs women, therefore, the scheme will empower women and increase their participation in the formal economy.

Source: This post is based on the following articles:

  • “Government approves Production Linked Incentive (PLI) Scheme for Textiles” published in PIB on 8th September 2021.
  • “Cabinet approves ₹10,683 crore incentive scheme for textile sector” published in The Hindu on 9th September 2021.
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