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In a significant move aimed at bolstering India's textile sector, the Ministry of Textiles has officially launched the Production Linked Incentive (PLI) Scheme for Textiles on a pan-India basis. This initiative, as announced by the Minister of State for Textiles, Pabitra Margherita, is designed to propel the production of Man-Made Fibre (MMF) apparel, MMF fabrics, and technical textiles, helping the industry achieve scale and competitiveness in the global market.
The PLI Scheme for Textiles was approved by the government in 2021 with a massive outlay of ₹10,683 crore over a five-year period. This substantial investment underscores the government's commitment to transforming India into a global hub for textile manufacturing. By focusing on MMF apparel, MMF fabrics, and technical textiles, the scheme aims to tap into the growing demand for these products globally, leveraging India's potential in this sector.
Pan-India Implementation: The PLI Scheme is being implemented across India, indicating a nationwide push towards enhancing the textiles industry. This comprehensive approach ensures that benefits are evenly distributed, providing opportunities for both large and small enterprises.
Focus on MMF and Technical Textiles: The scheme prioritizes the production of Man-Made Fibre (MMF) apparel and technical textiles, which are crucial for enhancing India's competitiveness in the global market. These sectors are expected to drive growth and exports, opening new avenues for domestic manufacturers.
Support for MSMEs: Out of the 74 applicants selected under the scheme, 24 are Micro, Small, and Medium Enterprises (MSMEs). This emphasis on MSMEs is significant as it ensures that smaller businesses, which form the backbone of India's industrial landscape, receive adequate support and incentives to expand their operations.
The Ministry of Textiles has projected a turnover of Rs 2,16,760 crore, including exports, for the scheme period. This ambitious target reflects the potential scale and impact of the initiative on the Indian economy. For the fiscal year 2025-26, approximately 22 percent of the ministry's budget is dedicated to the PLI Scheme for Textiles, highlighting the financial commitment towards this sector.
Additionally, the overall budget for the Ministry of Textiles for 2025-26 has been increased to Rs 5272 crore, marking a 19 percent rise over the previous year's allocation. This augmented funding will help in bolstering various initiatives, including the PLI Scheme, alongside promoting other aspects of the textile industry such as handlooms and technical textiles.
Alongside the PLI Scheme, the government is implementing other strategic initiatives to boost the competitiveness and reach of India's textile products:
Rebate of State and Central Taxes and Levies (RoSCTL) Scheme: This scheme is aimed at enhancing the competitiveness of apparel, garments, and made-ups by adopting the principle of zero-rated exports. It provides a rebate on state and central taxes and levies to exporters.
Remissions of Duties and Taxes on Exported Products (RoDTEP) Scheme: Products not covered under the RoSCTL scheme are supported under RoDTEP, which also benefits other sectors. This initiative helps in offsetting taxes and levies on exported products, thereby increasing the export competitiveness.
Market Access Initiative (MAI) Scheme: The government provides financial support through MAI for organizing and participating in trade fairs, exhibitions, buyer-seller meets, and other events both nationally and internationally. This support is crucial for small and medium-sized businesses looking to expand their market reach.
To enhance the production of technical textiles such as agro-textiles, medical textiles, and geo textiles, the government has added two more types of shuttle-less looms to the list of fully exempted textile machinery. This move is part of efforts to promote domestic manufacturing of technical textile products at competitive prices.
Moreover, there is a growing need to reduce dependence on imported textile machinery. Currently, India imports various machinery components like auto-corners, winders, and fancy doublers, which are essential for garment manufacturing. To support this, proposals for schemes providing long-term interest subsidies might be considered, encouraging local machinery production and helping manufacturers establish sustainable operations.
To address the challenge of stagnant cotton productivity, the Union Budget 2025-26 has announced a five-year Cotton Mission. This initiative aims to enhance cotton productivity, especially for extra-long staple varieties, through the use of science and technology support. Such efforts are vital for maintaining India's position as a significant player in the global cotton market.
The Ministry of Textiles is also taking measures to promote traditional handloom textiles across the country. These initiatives include:
The implementation of the PLI Scheme for Textiles on a pan-India basis marks a pivotal moment for India's textiles sector. With a focus on scaling up MMF apparel and technical textiles production, India aims to capitalize on its extensive human resource base and emerging manufacturing capabilities. As the textile industry navigates this transformation, the integration of technology and innovation, coupled with supportive government policies, will be crucial for achieving long-term success in both domestic and international markets. By enhancing competitiveness and promoting exports, the PLI Scheme positions India for a significant leap forward in the global fabric industry.
