India’s Textile PLI Scheme Cuts Import Dependence, Boosts Value-Added Exports
India’s Production-Linked Incentive (PLI) scheme for textiles is beginning to reduce dependence on imports of niche textile products while accelerating exports of value-added and technical textiles, according to government data.
Launched in September 2021 with an outlay of Rs 10,683 crore (US$ 1.13 billion), the scheme aims to strengthen domestic manufacturing of man-made fibre (MMF) apparel, MMF fabrics and technical textiles by attracting new investments and expanding production capacity.
Government data comparing the post-PLI period (2022–25) with 2019–21 shows a sharp decline in imports across several specialised textile categories. Imports of synthetic raincoats and overcoats fell to zero, down from US$ 2.9 million earlier. Imports of men’s outerwear dropped 99% to US$ 0.1 million, while non-woven MMF products declined 77% to US$ 10.6 million. Dyed knit fabrics fell to US$ 8.8 million from US$ 26.5 million, and women’s synthetic jackets declined to US$ 2.9 million from US$ 8.9 million.
At the same time, exports of value-added textile products registered strong growth. Clinical diaper exports rose 193% to US$ 7.7 million, narrow woven MMF fabrics increased 157% to US$ 31.5 million, and men’s synthetic briefs more than doubled to US$ 66.4 million.
Under the scheme, 170 applicants have been approved across three rounds, with Gujarat, Maharashtra and Madhya Pradesh emerging as leading states. Approved companies have proposed investments of around Rs 41,500 crore (US$4.39 billion), significantly higher than the initial target of Rs 19,000 crore, supporting capacity expansion, employment generation and development of a stronger textile manufacturing ecosystem.
