PLI Scheme for Textiles

Background

India has always been famous for cotton and natural fibres, but in the modern textile industry, MMF (Man-Made Fibres) and Technical Textiles are increasingly dominating global demand.

To ensure that India does not remain behind in this changing trend, the Government launched the PLI Scheme for Textiles in 2021, covering a 10-year period (till 2030).

It is a Central Sector Scheme — i.e., fully funded by the Union Government.

Quick Facts

• Type: Central Sector Scheme
• Purpose: Promote production of high-value MMF Fabric, Garments, and Technical Textiles.
• Tenure: 2021 to 2030.
• Implementing Agency: Project Management Agency (PMA) appointed by Ministry of Textiles.

Objectives

1. Promote large-scale production of MMF apparel, fabrics, and technical textile products.
2. Enable the Indian textile industry to achieve global competitiveness in scale and quality.
3. Generate large employment opportunities by expanding the size and scale of production.

Salient Features

(i) Beneficiaries

• Any person — including company/firm/LLP/trust — incorporated in India can apply.
• Once selected, the applicant must form a new/separate company under the Companies Act, 2013 (to ensure accountability).

(ii) Threshold Eligibility

The scheme has two parts depending on the investment and turnover capacity:

Criteria	Scheme Part-1	Scheme Part-2
Minimum Investment (excluding land/administrative buildings)	₹300 crore	₹100 crore
Minimum Turnover	₹600 crore	₹200 crore

(iii) Incentive Mechanism

• Incentives are linked to achieving:
  1. The prescribed turnover for that year, AND
  2. 25% additional incremental turnover over the preceding year’s turnover.
• Maximum Cap on Incentives:

• From Year 2 onwards → Cap of 10% over and above the minimum incremental turnover growth of 25%.
• For Year 1 → Cap of 10% over and above 2× the investment made.

(iv) Ineligible Investments

• Investment in land and administrative buildings (offices, guest houses, etc.) is not eligible for incentives.

(v) Monitoring

• The scheme will be closely monitored by the Empowered Group of Secretaries (EGoS) headed by the Cabinet Secretary.

Why is it Important?

• India is traditionally strong in cotton textiles, but global demand is shifting towards MMF-based and technical textiles.
• This scheme ensures India adapts to the new global textile market trends, creates export competitiveness, and generates employment in a labour-intensive sector.

✅ In essence: The PLI Scheme for Textiles is designed to push India into the high-value textile segment by incentivising investment and production, thereby making India a global hub for MMF and technical textiles by 2030.