The Production Linked Incentive (PLI) scheme for textiles has proven to be a game-changer for the industry. It extends financial incentives over five years to support manufacturing in Manmade Fibre (MMF) apparel, fabrics, and technical textiles, fostering scale, competitiveness, and global integration. The Textiles Ministry has recently widened the scheme’s scope by including more HS Codes for Technical Textiles. In February, key amendments were approved, enabling an early disbursement of ₹54 crore.
The total incentive payout spans FY26 to FY30 (falling within the FY25–FY29 window) and comes with a budgetary allocation of ₹10,683 crore. So far, the scheme has driven investments of ₹7,343 crore, a turnover of ₹4,648 crore, and exports worth ₹538 crore.
Gautam Kalra of Madura Industrial Textiles, a scheme beneficiary, emphasized that the initiative promotes not only financial support but also facilitates technology transfer and innovation in the MMF and technical textiles space in India.
The scheme has two investment thresholds: ₹100 crore under Part 1 and ₹300 crore under Part 2, with incentives tied to achieving an annual 25% incremental turnover. Nikhil Dake, CFO of Global IGN, another beneficiary, shared that the PLI scheme has significantly boosted their investments in automation, product development, expansion, and job creation.
Technical textiles are a cornerstone of the scheme, comprising 57% of the 74 selected applications from 42 companies. These textiles are critical for fast-growing industries and are helping India compete with global leaders like China, Vietnam, and Bangladesh by meeting international benchmarks.