CITI welcomes PLI Scheme 2.0 for textiles, says changes pivotal for growth

CITI has welcomed the PLI Scheme 2.0 for Textiles, saying the lower thresholds, wider HSN coverage and easier eligibility will benefit MMF apparel, fabrics and smaller firms

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The Confederation of Indian Textile Industry (CITI) has welcomed the new production linked incentive (PLI) Scheme for Textiles announced on Tuesday (September 30). The industry body said the PLI Scheme 2.0 would encourage wider participation and significantly benefit smaller entities in the textile ecosystem. 

CITI had been advocating for a more liberalised PLI Scheme for Textiles for some time. “We are deeply grateful to the Hon’ble Union Textiles Minister and all concerned officials in the textiles ministry for this new-look PLI Scheme for Textiles,” CITI Chairman Ashwin Chandran said. “The revisions made in the PLI Scheme will inject huge momentum into the Indian textile and apparel sector in its journey towards becoming more globally competitive,” he added. 

The CITI Chairman noted that the expanded coverage of PLI Scheme 2.0, with the addition of eight new HSN (Harmonised System of Nomenclature) codes for man-made fibre (MMF) apparel and nine new HSN codes for MMF fabrics, would provide a strong impetus to India’s MMF segment. The move would encourage the production of high-value MMF apparel and fabrics in the country. Globally, the textile ecosystem is dominated by man-made fibre, while in India cotton still leads, Chandran observed. 

He said the flexibility introduced under the revised PLI Scheme, where units could now be set up within an existing company, would improve the ease of doing business. Earlier, companies had to establish separate units to avail themselves of the scheme’s benefits. 

The CITI Chairman also highlighted that the significant lowering of investment thresholds to qualify for benefits under the new PLI Scheme, effective August 1, 2025, along with changes in the turnover-linked incentive structure, would be pivotal in accelerating growth in the textile and apparel sector. 

“The lowering of the investment thresholds and the revision in the turnover-linked incentive mechanism are worth their weight in gold,” Chandran said. The revised investment thresholds are Rs 150 crore (Part 1A) and Rs 50 crore (Part 2A). In the turnover-linked incentive mechanism under the new scheme, only 10 per cent incremental turnover is required from the second year onwards, effective financial year 2025-26. 

India aims to build a $250 billion domestic textile and apparel industry by 2030 and achieve textile and apparel exports worth $100 billion by the same year. The current domestic textile industry is estimated at about $180 billion, while India’s textile and apparel exports in FY25 stood close to $38 billion.