The first round of incentive payments under the Production-Linked Incentive (PLI) scheme is set to be distributed to approximately 12 textile producers. A Senior Government official stated, “Around 40 companies have grounded investments. Our gestation period ended in March 2024, and we hope that 10–12 enterprises will receive incentive payouts this fiscal year.”
Launched in 2021 with a budget of Rs. 10,683 crore, the initiative aims to boost domestic manufacturing of man-made fabrics (MMF), clothing, and technical textiles. However, private sector response has been tepid.
This development is significant, especially since a committee led by the Cabinet secretary highlighted a “shortfall” in investment progress for 2023–24 across three of the 14 PLI sectors, textiles included. Initially outlined by the Ministry of Textiles in December 2021, the scheme received 64 applications amounting to under Rs. 6,000 cr, with some companies citing a lack of experience as a reason for not investing in the proposed textile categories.
MMF, which includes chemicals like viscose, polyester, and acrylic, constitutes 5% of India’s total garment exports, while technical textiles are emerging as a vital industry with applications in manufacturing airbags, bulletproof vests, personal protective equipment (PPE), and sectors like aviation, defense, and infrastructure.
Additionally, the Ministry of Textiles has proposed a second PLI scheme focused on clothing, with an anticipated budget of Rs. 4,000 cr awaiting Cabinet approval.
The first round of incentive payments under the Production-Linked Incentive (PLI) scheme is set to be distributed to approximately 12 textile producers. A Senior Government official stated, “Around 40 companies have grounded investments. Our gestation period ended in March 2024, and we hope that 10–12 enterprises will receive incentive payouts this fiscal year.”
