India’s production-linked incentive (PLI) scheme for textiles is expected to be prolonged by roughly four years, with relaxed qualifying conditions designed to draw in more micro, small and medium enterprises, according to people familiar with the matter.
The scheme currently runs to 2029-30. The planned extension would constitute its fourth round.
Across the first three rounds, the government cleared 170 applicants. Firms that missed out earlier are also likely to be given a fresh chance to qualify for incentives in the coming round.
The revisions are intended to make the programme friendlier to industry and sharpen its overall effectiveness, the people said.
Cleared in September 2021 with a budget of ₹10,683 crore, the textiles PLI scheme allows a two-year gestation period, followed by five performance years, and stays in force through fiscal 2029-30.
The programme aims to stimulate large-scale production of man-made fibre (MMF) apparel, MMF fabrics and technical textiles, thereby strengthening India’s competitiveness within global textile value chains.
The government is adjusting the rules to suit MSMEs better, by cutting the minimum investment and turnover requirements, an official said.
“Of the 170 applicants approved to date, 46 are based in Gujarat, followed by 27 in Maharashtra and 23 in Madhya Pradesh,” ET reported.
Taken together, these firms have pledged investments of about ₹41,500 crore, more than twice the ₹19,000 crore originally projected by the Cabinet.
Image courtesy: Aditya Birla 3
