Cabinet Approves Rs 10,683 Crore PLI Scheme for Textiles

The government expects investments of more than Rs 19,000 crore into the sector during the five-year period.

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Cabinet Approves Rs 10,683 Crore PLI Scheme for Textiles
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The Union Cabinet on Wednesday, 8 September, approved the much-anticipated production-linked incentive (PLI) scheme for the textiles sector. Under the scheme, incentives worth Rs 10,683 crore will be provided over five years.

According to the government, the move will especially positively impact states like Gujarat, Uttar Pradesh, Maharashtra, Tamil Nadu, Punjab, Andhra Pradesh, Telangana, Odisha among others.

The government expects investments of more than Rs 19,000 crore into the sector during the five-year period.

It is also expected to bring about additional production turnover of over Rs 3 lakh crore during the period and create employment opportunities of over 7.5 lakh people directly and several lakhs more for supporting activities, as per the government.


The government will give higher priority for investment in the aspirational districts and tier-3 cities.

Industry participants have lauded the decision of the government.

Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said that it will be a game changer for the Indian textile industry and will transform India's growth story.

Sakthivel said that the scheme will result in fresh investment of gigantic proportions, expand manufacturing capacities and enhance exports multifold.

"It will make India a key player in the global textile value chain with focus on high value MMF products. Besides, it will promote industrial development in backward regions of the country."
A Sakthivel, Chairman, Apparel Export Promotion Council

The focus of the PLI scheme would be for the development of man-made fibre and technical fibre segments that are in high demand in advanced economies where India already has a big presence with its technical products.

Commerce and Industry Minister Piyush Goyal said that fabric and garments made from these fibres would be a focus of the scheme so that world class facilities are built in the country.

He also said that the government was also working on free trade agreements (FTAs) with advanced economies such as the UK, the US, EU that will help the country both ways to get requisition imports as well boost exports. FTA would also help the textile sector, the minister said, in getting a level playing field that faced unequal duties in some of these markets.

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