PLI Scheme Boosts India’s MMF And Technical Textiles Growth
Launched in 2021, the Production Linked Incentive (PLI) Scheme for Textiles has emerged as a transformative initiative, propelling India’s textile industry toward global competitiveness. Operational from 24th September 2021 to 31st March 2030, the scheme offers financial incentives over five years to bolster manufacturing in Manmade Fibre (MMF) apparel, fabrics, and technical textiles, key segments for achieving scale, innovation, and international market integration.
To ensure the scheme’s success, the Ministry of Textiles has proactively expanded its coverage by notifying additional HS Codes for technical textile products. In a significant move to facilitate early support, amendments approved on 20th February 2025 enabled the early disbursement of Rs 54 crore in incentives.
“The PLI Scheme is truly a game changer for our textile industry,” said Gautam Kalra of Madura Industrial Textiles Pvt. Ltd., a scheme beneficiary. “It’s not just about financial incentives, it has enabled innovation and technology transfer in India’s MMF and technical textiles sectors.”
The scheme features two investment thresholds Rs 100 crore (Part 1) and Rs 300 crore (Part 2)—with incentive payouts tied to achieving at least a 25% year-on-year incremental turnover. Disbursements will be made over five financial years (FY 2025–26 to FY 2029–30), based on performance during FY 2024–25 to FY 2028–29, with a total budgetary outlay of Rs 10,683 crore.
So far, the scheme has catalyzed investments worth Rs 7,343 crore, generated turnover of Rs 4,648 crore, and supported exports of Rs 538 crore. Technical textiles have emerged as a major focus area, accounting for 56.75% of the 74 approved applications across 42 companies.
“The Scheme has rightly recognised the potential of Technical Textiles and Manmade Fibre Textiles by including a wide range of their products,” noted Shaleen Toshniwal, Chairman of MATEXIL (Manmade and Technical Textiles Export Promotion Council), the official EPC tasked with promoting exports in these segments.
The PLI Scheme is also driving foreign investment and enhancing India’s position as a global textile hub by supporting the production of high-tech materials such as auto safety equipment, glass fibre, and carbon fibre. These materials are critical to high-growth industries and will help Indian manufacturers meet international standards while competing with established exporters like China, Vietnam, and Bangladesh.
Mr. Nikhil Datye, CFO of Nobel Hygiene Private Limited, another beneficiary, added, “The support under the PLI Scheme has enabled us to accelerate investments in automation, product development, capacity expansion, and employment generation.”
As India aims to become a leading global supplier of advanced textile products, the PLI Scheme stands out as a strategic enabler for innovation, investment, and export growth in the country’s evolving textile landscape.
