Last updated: Dec, 2021
In the Union Budget 2021-22, the Indian government announced a production-linked incentive (PLI) scheme for 13 sectors (including textiles) at an estimated outlay of Rs. 1.97 lakh crore (US$ 26.70 billion) to boost domestic production and employment. As part of this, in September 2021, Prime Minister Mr. Narendra Modi approved the production-linked incentive (PLI) scheme in the textiles sector—for man-made fibre (MMF) apparel, MMF fabrics and 10 segments/products of technical textiles—at an estimated outlay of Rs. 10,683 crore (US$ 1.45 billion). Through this scheme, the government aims to boost the manufacturing of high-value MMF fabrics, garments and technical textiles and promote investments from global players in the sector. Following this, the government plans to establish the textile sector as one of the strongest pillars of Prime Minister’s Atmanirbhar Bharat (self-reliant India) initiative.
Over the next five years, the PLI scheme for textiles is expected to result in an estimated investment of Rs. 19,000 crore (US$ 2.58 billion), facilitate a cumulative turnover of >Rs. 3 lakh crore (US$ 40.66 billion) and create >7.5 lakh additional employment opportunities in the country. Here is an in-depth analysis of the PLI Scheme announced for the Textiles sector.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.