On Sept 8, 2021, The Union cabinet approved the PLI scheme worth ₹ 10,683 crores for the textile sector. The scheme aims to restore India’s dominant market position in global textile exporter rankings.
A shift in consumer preferences saw man-made fibre (MMF) surpasses cotton as a fibre of choice, constituting 75% of worldwide textile consumption. India is the world eminent producer of cotton textiles, with MMF contributing less than 30% of overall sectoral exports.
The focus of the scheme is on 40 MMF apparel, 14 MMF fabrics, and 10 segments or products of technical textiles. The 64 products have been strategically chosen as they are among top-traded lines globally and India has less than 5% share in each of them.
The scheme has two parts:
|Particulars||Part 1||Part 2|
||Rs. 300 Cr.
||Rs. 100 Cr.
||Rs. 600 Cr.
||Rs. 200 Cr.
|Growth over PY turnover
|Incentive (Year 1)
|Incentive (Post 1 year)**
||Low-capex, labour intensive-business
|*In the first performance year after two years
** Reduce every year by 1%
Expectations with this Stamp of Approval-
- Rs. 19000 Crore fresh investment could be seen
- Rs. 3 lakh Crore additional production turnover in five years
- 7.5 lakh additional employment will be created
- Investment in Aspirational districts & tier 3-4 towns
- Women Participation in large numbers
The Indian textile industry has been given a great shot at making it big. The onus is now on entrepreneurs and existing companies to take full advantage of it. The textile ministry intends to notify the scheme over the next few days with guidelines to be announced by end of the month.