Govt approves ₹10,683 crore PLI scheme fortextile sector
The scheme will help create direct employment for more than 750,000 people
NEW DELHI: The cabinet on Wednesday approved the production-linked incentive (PLI) scheme worth ₹10,683 crore for textiles sector with an aim to boost domestic manufacturing and exports, Union ministers Anurag Thakur and Piyush Goyal said on Wednesday.
“With this, India is poised to regain its dominance in Global Textiles Trade. leveraging Economies of Scale, the scheme will help Indian companies to emerge as Global Champions,” said Goyal. The scheme, the government said, will help create additional employment of over 750,000 people directly and several more for supporting work.
Scheme will also pave the way for participation of women in large numbers, the union ministers said in the press conference. “Incentives worth ₹10,683 crore will be provided to industry over five years. It is expected that this scheme will result in fresh investment of above ₹19,000 crore and additional production turnover of over ₹3 lakh crore in five years,” said Goyal.
“There will be higher priority for investment in Aspirational Districts & tier 3/4 towns. The Scheme will also positively impact especially States like Gujarat, UP, Maharashtra, Tamil Nadu, Punjab, AP, Telangana, Odisha etc,” he said.
The cabinet approved PLI Scheme for Textiles for MMF Apparel, MMF Fabrics and 10 segments/ products of Technical Textiles with a budgetary outlay of ₹10,683 crore. PLI for Textiles along with RoSCTL, RoDTEP and other measures of Government in sector e.g. providing raw material at competitive prices, skill development etc will herald a new age in textiles manufacturing.
PLI scheme for textiles is part of the overall announcement of PLI Schemes for 13 sectors made earlier during the Union Budget 2021-22, with an outlay of ₹1.97 lakh crore.
With the announcement of PLI schemes for 13 sectors, minimum production in India is expected to be around ₹37.5 lakh crore over 5 years and minimum expected employment over 5 years is nearly 1 crore. PLI scheme for Textiles will promote production of high value MMF Fabric, Garments and Technical Textiles in country. The incentive structure has been so formulated that industry will be encouraged to invest in fresh capacities in these segments. This will give a major push to growing high value MMF segment which will complement the efforts of cotton and other natural fibre-based textiles industry in generating new opportunities for employment and trade, resultantly helping India regain its historical dominant status in global textiles trade.