PLI Scheme Fuels Competitive Edge for India’s Textile Exporters

Mumbai (Maharashtra) [India], July 14: Launched in 2021, the Production Linked Incentive (PLI) Scheme for Textiles has become a pivotal force driving transformation in India’s textile sector. Active from 24th September 2021 through 31st March 2030, the scheme provides five years of financial incentives aimed at boosting domestic production of Manmade Fibre (MMF) apparel, fabrics, and technical textiles — enhancing industry scale, global competitiveness, and integration.

To maximise the scheme’s impact, the Ministry of Textiles has implemented several forward-looking measures. These include broadening the scope of eligible products by adding new HS Codes for Technical Textiles. Additionally, a key amendment approved on 20th February 2025 has enabled early disbursement of ₹54 crore, accelerating initial support to industry participants.

“The PLI Scheme is truly a game changer for our textile industry,” said Mr. Gautam Kalra, Madura Industrial Textiles Pvt. Ltd., one of the Scheme’s beneficiaries. “It’s not just about financial incentives — the Scheme has facilitated technology transfer and innovation in India’s MMF and technical textiles sector.”

Under the Scheme, the minimum investment threshold is ₹100 crore (Part 1) and ₹300 crore (Part 2), with incentive disbursements linked to achieving an incremental turnover of 25%over the previous year.

Mr. Nikhil Datye, CFO, Nobel Hygiene Private Limited., another beneficiary, remarked, “The support under the PLI Scheme has enabled us to accelerate investments in automation, product development, capacity expansion, and employment generation.”

Incentive payouts will cover five financial years (FY 2025–26 to FY 2029–30), based on performance in the FY 2024–25 to FY 2028–29 period, with a total budgetary outlay of ₹10,683 crore.

Till date, the Scheme has catalyzed:

• Investments of ₹7,343 crore
• Turnover of ₹4,648 crore
• Exports of ₹538 crore.

Technical textiles have emerged as a major focus area under the Scheme, accounting for 56.75% of the 74 selected applications, spanning 42 companies.

“The Scheme has rightly recognised the potential of Technical Textiles and Manmade Fibre Textiles by including a wide range of their products,” said Mr. Shaleen Toshniwal, Chairman, MATEXIL (Manmade and Technical Textiles Export Promotion Council), the official EPC designated to promote exports in these segments.

By boosting production of high-tech products like auto safety equipment, glass fibre, and carbon fibre, the Scheme is not only driving foreign investment but also enhancing India’s positioning as a competitive global textile hub. These materials are vital to high-growth industries, enabling India’s textile sector to meet international standards and challenge established exporters like China, Vietnam, and Bangladesh.

For more information, please visit: www.matexil.org