India Expands Textile PLI Scheme to Boost Man-Made Fibre and Technical Textiles

Original: Centre to expand product coverage under Rs 10,683 crore textile PLI, says Giriraj Singh

The Economic Times•Apr 7, 20262 min

In a Nutshell

The Indian government is set to expand its ₹10,683 crore (approximately $1.3 billion USD) production-linked incentive (PLI) scheme for textiles, as announced by Union Minister Giriraj Singh. This expansion aims to include man-made fibre apparel, fabrics, and technical textiles, promoting investment and growth in the sector.

Key Points

01The PLI scheme for textiles will now cover additional product categories.
02This expansion is part of the government's strategy to enhance ease of doing business.
03The initiative aims to attract fresh investments in the textile sector.
04The move reflects the government's commitment to boosting employment in the industry.
05India's textile market is projected to grow significantly, reaching ₹14.95 lakh crore (approximately $1.8 trillion USD) by 2024.

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Full Summary

The Indian government plans to expand the ₹10,683 crore (approximately $1.3 billion USD) production-linked incentive (PLI) scheme for textiles, as announced by Union Minister Giriraj Singh. This expansion will include man-made fibre (MMF) apparel, fabrics, and technical textiles, aiming to enhance industry support and encourage new investments. Singh emphasized that this initiative aligns with the government's focus on fostering employment and strengthening India's position in the global textile market. The minister noted a shift in focus towards technical textiles, which were previously overlooked. He also highlighted the growth in footwear consumption in India, which has reached nearly 3 pairs per person, reflecting increased purchasing capacity over the past 12 years under the Modi administration. The textile market is expected to grow at a compound annual growth rate (CAGR) of 8.3%, reaching ₹14.95 lakh crore (approximately $1.8 trillion USD) by 2024.

Key Figures

₹10,683 crore

Total budget for the PLI scheme

8.3%

Projected CAGR for the textile market until 2024

₹14.95 lakh crore

Expected market size of the textile sector by 2024

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Why It Matters

The expansion of the PLI scheme is likely to create more job opportunities in the textile sector and improve the availability of quality products, benefiting consumers and businesses alike.

Who is affected

textile manufacturers, workers, and consumers

What to know

Industry stakeholders should prepare for the new opportunities and consider investing in the expanded product categories under the PLI scheme.

FAQ

The expanded PLI scheme aims to support the textile industry by including additional product categories, enhancing ease of doing business, and encouraging fresh investments.

The expansion is expected to boost employment, increase production capacity, and strengthen India's position in the global textile market.

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