Textiles PLI scheme reopens with lower ₹100 crore turnover threshold

The Centre has lowered the minimum turnover requirement from Rs 200 crore to Rs 100 crore and extended the scheme's tenure to FY34 for applicants approved under Round 4.

The Ministry of Textiles on Wednesday said it would reopen the application portal for the Production Linked Incentive (PLI) Scheme for Textiles from November 1 to December 31 and had also reduced the minimum turnover requirement to Rs 100 crore to ensure greater participation from micro, small and medium enterprises (MSMEs) and mid-sized manufacturing units.

 

The new applications are being invited under Round 4 of the scheme, which is aimed at promoting the manufacturing of man-made fibre (MMF) apparel, MMF fabrics and technical textiles, enhancing domestic manufacturing capabilities, attracting investment, generating employment and strengthening India's position in global textile value chains.

  

Reduction in Minimum Turnover Criterion:

 

The minimum turnover requirement has been reduced from Rs 200 crore to Rs 100 crore under the Part 2 category of the scheme, enabling greater participation by MSMEs and mid-sized manufacturing units. The scheme's tenure has been extended up to the financial year 2033-34 exclusively for applicants approved under Round 4. The extended tenure is intended to provide these applicants with a longer investment and operational horizon for establishing and scaling up their manufacturing capacities.

 

"At a time when the industry continues to be buffeted by global headwinds even as it vigorously strives towards the $350 billion ambition for the textile and apparel sector by 2030, this measure by the Union Ministry of Textiles comes as a huge confidence booster and provides a huge fillip to companies," said Ashwin Chandran, chairman of the Confederation of Indian Textile Industry (CITI).

 

"The liberal terms announced for Round 4 – especially the lowering of the turnover threshold and the longer-term horizon – will provide greater opportunities for more companies to participate in the scheme, leading to more investments and job creation, besides enhancing the sector’s international competitiveness," he said.

 

"The PLI Round 4, coupled with the proposed implementation of the National Fibre Scheme announced in the latest Union Budget, is just the sort of policy support that the MMF arena was looking for," Chandran pointed out.

 

MMF dominates the global textile arena. The GST reduction on MMF fibre and yarn to 5 per cent has already removed the inverted duty structure in the MMF value chain from the fibre stage onwards. However, inversion remains at the upstream stage, as PTA and MEG – the key raw materials for MMF fibre – continue to attract 18 per cent GST.

 

India’s textile and apparel exports grew by 17.51 per cent year-on-year in September 2026, measured in US dollar terms. However, year-on-year growth for April-September 2026 was a modest 2.38 per cent, as apparel exports declined compared with the same period in 2025.