Govt revises textile PLI scheme to boost investment and ease norms

The revised PLI scheme for textiles cuts investment limits, eases eligibility norms, and extends deadlines to attract wider participation from the industry

The government has announced a revision to the Production Linked Incentive (PLI) scheme for the textiles sector to address industry challenges, enhance ease of doing business, and encourage fresh investments, the Ministry of Textiles said on Thursday.

 

Key changes include lower investment threshold and relaxed norms

 

The amendments to the scheme for man-made fibre (MMF) apparel, fabrics, and technical textile products include extending the HSN codes of MMF apparel and fabrics, reducing the minimum threshold of investment, and relaxing norms to allow project units to be set up within existing companies instead of only new entities.

 

Another change includes lowering the incremental turnover criteria for availing incentives to 10 per cent from 25 per cent earlier.

 

 

“With effect from 01.08.2025, for all new applicants, minimum investment stands reduced from Rs 300 crore to Rs 150 crore in Part-1 category and from Rs 100 crore to Rs 50 crore in Part-2 category of the scheme,” the statement said.

 

Portal reopened to encourage wider industry participation

 

“To encourage wider participation from the industry, the Ministry of Textiles has opened the PLI scheme application portal until 31 December 2025. Interested companies are urged to take advantage of the revised framework and extended timeline to apply and contribute to India’s vision of becoming a global textile manufacturing hub,” the statement added.

 

It further said the revisions will significantly reduce entry barriers and financial thresholds, enabling faster execution of projects.

 

PLI scheme background and current progress

 

The Centre had approved the PLI scheme for textiles in September 2021, with a budgetary outlay of Rs 10,683 crore for a five-year period to boost the production of MMF apparel, MMF fabrics, and technical textiles, among others.

 

MMFs include viscose, polyester, and acrylic, which are made from chemicals. Exporters estimate that MMF apparel currently accounts for a fifth of India’s overall apparel exports.

 

Technical textiles, on the other hand, represent a new-age segment used for manufacturing personal protective equipment (PPE) kits, airbags, and bulletproof vests, and have applications in aviation, defence, and infrastructure sectors.

 

So far, 74 participant companies with a committed investment of Rs 28,711 crore have been selected as beneficiaries under the PLI scheme.

 

Sector’s slow progress flagged among all PLI schemes

 

Of the 14 PLI schemes approved across sectors, the one for textiles has often been flagged as among the laggards due to delayed progress and limited uptake.