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Current Affairs

PLI scheme for textile sector

Date: 11 September 2021 Tags: Miscellaneous


A Production-Linked Incentive (PLI) scheme for textiles sector has been approved by the Union Cabinet.



It is expected that a fresh investment of Rs 19,000 crore will be attracted over the next few years for in-demand textiles with an additional turnover of Rs 3 lakh crore over five years



  • The scheme will focus on production of high value Man-Made Fibre (MMF) fabrics, garments and technical textiles.

  • Man-made staple fibres contributed about $1,699.05 million of exports in FY20. Technical textiles gained about $42.7 million of exports in the same year.

  • Exports of man-made staple fibre were $483.3 million in Q1 of FY22. It was $11.7 million for technical textiles.


Beneficiary producers

  • To be eligible for the first part of the scheme, an individual or company has to invest a minimum of Rs 300 crore in plant, machinery, equipment and civil works (excluding land and administrative building cost) to produce products of MMF fabrics, garments and products of technical textiles.

  • Under the second part of the scheme, investors have to spend a minimum of Rs 100 crore under the same conditions to be eligible.


Benefiting states

States where the scheme would benefit include Maharashtra, Uttar Pradesh, Telangana, Odisha, Tamil Nadu, Andhra Pradesh and Punjab.


PLI scheme

  • The scheme gives incentives to companies for improving their domestic manufacturing apart from focusing on reducing import bills and improving the cost competitiveness of local goods.

  • It will also give incentives on incremental sales for products manufactured in India. The scheme for different sectors will be implemented by the concerned ministries and departments.


Benefits of PLI scheme

  • The scheme will create large employment generation for next generation. It will help India become self-reliant over the next few years.

  • It will reduce imports for raw material and finished goods. In the long term, a higher quantum of exports from India will take place.

  • It will help in attaining production capacity/ incremental turnover in the upcoming years. It will ensure improvements in industrial infrastructure, benefiting the industry at large.