The scheme will help Indian companies to emerge as global champions in textile trade

Taking a step forward towards the vision of an ‘Aatmanirbhar Bharat’, the Government has approved the Production Linked Incentive (PLI) scheme for textiles. With a budgetary outlay of Rs. 10,683 crore, the scheme includes Man-Made Fibre (MMF) apparel, MMF fabrics and 10 segments/products of Technical Textiles.

Leveraging the economies of scale, the scheme will help Indian companies to emerge as global champions in textile trade and help create additional employment for 7.5 lakh people directly and several lakhs more for supporting activities. With this scheme, India is poised to regain its dominance in global textile trade.

Part of PLI schemes for 13 sectors

The PLI scheme for textiles, approved by the Union Cabinet on Wednesday, is part of the overall announcement of PLI schemes for 13 sectors made earlier during the Union Budget 2021-22, with an outlay of Rs. 1.97 lakh crore.

With the announcement of PLI schemes for 13 sectors, the minimum production in India is expected to be around Rs. 37.5 lakh crore over 5 years and the minimum expected employment over 5 years is nearly 1 crore.

The PLI for textiles along with Rebate of State and Central Taxes and Levies (RoSCTL), Remission of Duties and Taxes on Exported Products (RoDTEP), and other measures of the government in this sector like providing raw material at competitive prices and skill development will herald a new age in textiles manufacturing.

PLI to promote high-value fabrics and garments

The PLI scheme will promote production of high value MMF fabric, garments and Technical Textiles in the country.

The incentive structure has been formulated so 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.

The Technical Textiles segment is a new age textile, whose application in several sectors of economy, including infrastructure, water, health and hygiene, defense, security, automobiles, aviation, etc. will improve the efficiencies in those sectors of economy.

The government has also launched a National Technical Textiles Mission in the past for promoting R&D efforts in that sector. The PLI will help further, in attracting investment in this segment.

Boosting employment, empowering women

It is estimated that over a period of five years, the PLI scheme will lead to fresh investment of more than Rs.19,000 crore and will create additional employment opportunities of more than 7.5 lakh jobs in this sector and several lakhs more for supporting activities. A cumulative turnover of over Rs.3 lakh crore will be achieved under this scheme. The textiles industry predominantly employs women, therefore, the scheme will empower women and increase their participation in the formal economy.

Under the scheme, priority will be given for investment in Aspirational Districts, Tier 3, Tier 4 towns, and rural areas and the industry will be incentivized to move to backward areas. This scheme will positively impact States like Gujarat, Uttar Pradesh, Maharashtra, Tamilnadu, Punjab, Andhra Pradesh, Telangana, and Odisha.