Textile PLI Scheme 2.0 Set To Boost MSMEs, Says CITI
The Confederation of Indian Textile Industry (CITI) has welcomed the announcement of the new Production Linked Incentive (PLI) Scheme for Textiles, termed PLI Scheme 2.0, unveiled on September 30. The updated scheme is expected to encourage wider participation and significantly benefit smaller entities across the textile ecosystem.
CITI has long advocated for a more liberalized PLI Scheme for Textiles. Ashwin Chandran, Chairman, CITI said, “We are deeply grateful to the Union Textiles Minister and the ministry officials for this new-look PLI Scheme. The revisions will inject tremendous momentum into the Indian textile and apparel sector, enabling it to become more competitive globally.”
The PLI Scheme 2.0 expands coverage with the addition of 8 new HSN codes for MMF (Man-Made Fibre) apparel and 9 new HSN codes for MMF fabrics, providing a strong boost to India’s MMF segment. This is expected to accelerate the production of high-value MMF apparel and fabrics, bridging India’s position in a global textile market currently dominated by MMFs.
Chandran highlighted that the flexibility to set up PLI-eligible units within existing companies would significantly improve ease of doing business. Previously, companies had to establish separate units to access the scheme’s benefits.
The scheme also introduces lower investment thresholds Rs 150 crore (Part 1A) and Rs 50 crore (Part 2A) and a revised turnover-linked incentive mechanism, requiring only 10% incremental turnover from Year 2 onwards, effective FY 2025-26. These measures are expected to fast-track the growth of India’s textile and apparel sector.
India aims to build a US$ 250 billion domestic textile and apparel industry by 2030, alongside US$ 100 billion in exports. Currently, India’s textile industry is valued at approximately US$ 180 billion, with exports reaching nearly US$ 38 billion in FY 2024-25.
