PLI Advantages Are Probably Going to Spread to More Textile Products
The government is planning to extend the Production Linked Incentive (PLI) scheme to additional items in the textiles, pharmaceuticals, and solar photovoltaics (PV) sectors, while also considering increasing its duration from five to six years. This move is aimed at boosting domestic manufacturing, driving investments, and increasing production and exports.
Launched in 2021 with a budget of ₹1.97 lakh crore, the PLI scheme offers subsidies to manufacturers based on their production output and capital spending in key sectors like semiconductors, among others.
Although the scheme has seen considerable success in mobile manufacturing and holds potential for electronics, telecom, and food processing industries, its progress has been slower in areas like textiles and solar PV. In response, the government is now considering expanding PLI benefits to cotton garments, in addition to its current focus on man-made fiber (MMF) apparel, MMF fabrics, and technical textiles. Cotton garments represent a significant portion of India’s textile exports, which largely come from small mechanized looms.
The expansion is intended to support large-scale industrial parks linked to global value chains, with a specific focus on man-made fibers and technical textiles, which have struggled due to lower investment levels. According to officials, cabinet notes on the proposed expansion have been submitted to the Prime Minister’s Office and are awaiting final approval.
Since its launch, the PLI scheme has attracted ₹1.5 lakh crore in investments, generated production worth ₹10 lakh crore, and facilitated the disbursement of ₹10,000 crore in incentives. Despite these successes, the textile and apparel sector has seen a decline in exports, dropping to $35.94 billion in 2023-24 from a record high of $44.51 billion in 2021-22, according to the commerce ministry.
In the pharmaceutical and solar PV sectors, additional items are also being considered for inclusion in the PLI scheme to improve its overall impact and utilization.PLI Benefits Likely to Expand to More Textile Items
The government is planning to extend the Production Linked Incentive (PLI) scheme to additional items in the textiles, pharmaceuticals, and solar photovoltaics (PV) sectors, while also considering increasing its duration from five to six years. This move is aimed at boosting domestic manufacturing, driving investments, and increasing production and exports.
Launched in 2021 with a budget of ₹1.97 lakh crore, the PLI scheme offers subsidies to manufacturers based on their production output and capital spending in key sectors like semiconductors, among others.
Although the scheme has seen considerable success in mobile manufacturing and holds potential for electronics, telecom, and food processing industries, its progress has been slower in areas like textiles and solar PV. In response, the government is now considering expanding PLI benefits to cotton garments, in addition to its current focus on man-made fiber (MMF) apparel, MMF fabrics, and technical textiles. Cotton garments represent a significant portion of India’s textile exports, which largely come from small mechanized looms.
The expansion is intended to support large-scale industrial parks linked to global value chains, with a specific focus on man-made fibers and technical textiles, which have struggled due to lower investment levels. According to officials, cabinet notes on the proposed expansion have been submitted to the Prime Minister’s Office and are awaiting final approval.
Since its launch, the PLI scheme has attracted ₹1.5 lakh crore in investments, generated production worth ₹10 lakh crore, and facilitated the disbursement of ₹10,000 crore in incentives. Despite these successes, the textile and apparel sector has seen a decline in exports, dropping to $35.94 billion in 2023-24 from a record high of $44.51 billion in 2021-22, according to the commerce ministry.
In the pharmaceutical and solar PV sectors, additional items are also being considered for inclusion in the PLI scheme to improve its overall impact and utilization.
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