Govt Eases PLI Norms, Adds New MMF Product Lines
The Ministry of Textiles has notified key amendments to the Production Linked Incentive (PLI) Scheme for Textiles, expanding its coverage and easing participation norms for investors in the man-made fibre (MMF) and technical textiles segments. Issued on October 9, 2025, the notification introduces additional MMF apparel and fabric product lines through new HSN codes, extending eligibility to a wider range of woven, knitted and printed polyester, nylon and artificial fibre-based items.
To further encourage participation, the government has reduced the minimum additional incremental turnover requirement from 25% to 10% starting from the second performance year (FY 2025–26) and beyond. An additional application window has also been opened for existing beneficiaries, allowing them to make fresh investments of at least 15% of the prescribed minimum threshold and claim incentives on new production.
The amendments also simplify the eligibility structure, companies are no longer required to form a new entity to participate under the scheme; instead, they can establish a distinct project unit within their existing organization with separate accounts for investment and turnover. The entry window for new applicants has been extended until FY 2025–26, with incentives available up to FY 2028–29, subject to fund availability.
These changes aim to address implementation challenges faced by the industry and strengthen India’s global competitiveness in MMF and technical textiles. Detailed operational guidelines reflecting the amendments will be issued separately.
