PLI Scheme in Textile Industry

The Union Cabinet has given its approval to introduce the Production-Linked Incentive (PLI) Scheme in 10 more sectors for enhancing India’s manufacturing capabilities and exports (Atmanirbhar Bharat).

Earlier, the government had announced a production linked incentive or PLI scheme for medical devices, mobile phones and specified active pharmaceutical ingredients, with a proposed outlay of Rs. 51,311 crore.

What is PLI?

A scheme that aims to give companies incentives on incremental sales from products manufactured in domestic units.
The scheme invites foreign companies to set units in India, however, it also aims to encourage local companies to set up or expand existing manufacturing units.

What's announced for Textile Industry

The Union Cabinet has approved a Production-Linked Incentive (PLI) scheme for the textiles sector worth Rs 10,683 crore. India has taken a firm step towards dominance in the global textile market with the introduction of the Production Linked Incentive Scheme. The production-linked methodology will help catapult Indian corporate companies to emerge as the top champions in the heavily crowded space of international textile competition.

The PLI scheme will be instrumental in creating massive employment opportunities thus providing much-needed succour for meritorious manufacturing and service organizations. The most important category of investments is the self-declared inspirational districts and all contiguous geographical areas around Tier 3 and 4 towns.

The direct beneficiaries of these schemes are Telangana, Andhra Pradesh, Maharashtra, UP and Gujarat: all states having many inspirational cities and hardworking populations.

Various applications across the macroeconomic scenario

New age textiles will offer increased sales in the retail stores thereby increasing the net profits which will then be trickled down to the general masses. Apart from this, the environmental benefits of the MMF fabric are immense. The following services will hugely benefit by introducing technical textiles such as MMF fabric.

Water services
Infrastructural Up-gradation
Health sector
Hygiene across the geographical areas
Defense acquisitions

Which segments will the new PLI scheme promote?

The PLI scheme for textiles aims to promote the production of high value Man-Made Fibre (MMF) fabrics, garments and technical textiles.

Commerce and Textiles Minister Piyush Goyal said

Two-thirds of international trade in textiles is of man-made and technical textiles. This scheme has been approved so India can also contribute to the ecosystem of fabrics and garments made of MMF.