The Tirupur textile cluster’s manufacturers seem to be expecting the 2025 Budget to lower the turnover level that determines the benefit of the Central Government’s Production Linked Incentive (PLI) scheme for technical textiles.
As of present now, just one Tirupur enterprise out of 53 statewide has applied for PLI benefits due to the high barrier. Another Tirupur-based company’s application is being reviewed by the Textile Ministry.
The current plan stipulates a minimum investment of US$11.57 million (Rs. 100 crore) and a minimum turnover of US$23.15 million (Rs. 200 crore) for the first portion, and a minimum investment of US$34.73 million (Rs. 300 crore) and a minimum turnover of US$46.30 (Rs. 400 crore) for the second portion.
According to reports, the Ministry has notified industry groupings that it plans to reduce the minimum turnover criteria to two-digit slabs. The value of technical textiles has increased dramatically, from $22 billion in 2022 to over $40 billion in 2024.
Under the PLI plan, smaller companies in Tirupur that engage in technical textiles on a large scale will also be able to purchase and sell products using the Ministry’s support systems.
The China Plus One strategy, which aims for scalability in India—where the Textiles Ministry has forecast a 20% increase over the next two years—has been adopted by international players in the import-export trade of technical textile products.
Compared to a target of 30%, Tirupur has expanded its manufacturing capacity by 10% in the last two years to include technology textiles and man-made fibres. According to T.M. Subramanian, president of the Tirupur Exporters Association, the 5% annual growth rate will continue.