PLI scheme for textile industry: Here’s all you need to know about Rs 10,683 crore move

New Delhi: The Union Cabinet in its Wednesday (September 8) meeting, approved the Production-Linked Incentive (PLI) scheme for the textiles sector, a move that is aimed at making India into a manufacturing hub for textiles. The decision was taken in the cabinet meeting chaired by Prime Minister Narendra Modi.  

The PLI scheme will offer incentives to firms manufacturing textiles in India. Union Minister Piyush Goyal said that the government hopes to manufacture global champions in the textile industry, banking on the newly launched PLI scheme. 

The newly launched scheme for the textile industry is a part of the larger PLI scheme that was announced by Finance Minister Nirmala Sitharaman. With a budgetary outlay of Rs 1.97 crore, the overall PLI scheme will cater to about 13 industries. 

Here’s everything you need to know about the PLI scheme for the textile industry 

- The Central government will offer incentives worth Rs 10,683 crore to firms manufacturing textiles locally. 

- The scheme is also aimed at attracting fresh investments in the textile sector. The Centre is aiming to attract investments to the tune of Rs 19,000 crore in the coming years. 

- The scheme will also aim to increase the turnover of the textile industry by a whopping Rs 3 lakh crore over five years. 

- The Centre focus will to improve production in aspirational districts or Tier-3 and Tier-4 cities. “The factories based around aspirational districts or Tier-3 and Tier-4 cities will be given priority,” Goyal said. 

- Textile firms located in Gujarat, UP, Maharashtra, Tamil Nadu, Punjab, Andhra Pradesh, and Telangana, among other states are likely to benefit the most from the PLI scheme. 

- The textile PLI scheme will promote the manufacturing of high-value Man-Made Fibre (MMF) fabrics, garments and technical textiles in the country.

- Goyal said that scheme the has been approved so India can also contribute to the ecosystem of fabrics and garments made of MMF, which along with technical textiles, contribute two-thirds of international trade in textiles.  

- Incentives under the PLI scheme will be rolled in two phases, according to the official statements. 

- An individual or a firm willing to invest a minimum of Rs 300 crore to manufacture MMF fabrics or technical textiles will be eligible to apply for incentives under the first phase of the scheme. Also Read: OnePlus to unveil smartphones under Rs 20,000 in India: Report

- An individual or a firm willing to invest a minimum of 100 crores to receive benefits in the second phase of the scheme. Also Read: Planning to sell your Ford EcoSports, Figo, Endeavour car? STOP and read this