Indian government intends to facilitate the textile sector and is in consultation with various textile stakeholder to formulate its second edition of production linked incentives (PLI 2.0) scheme
The Indian government is currently acting on plans to double the textile and clothing export to $90 billion. To encourage investment it announced PLI 1.0 under which numerous incentives for announced on investment of Rs300 crore and Rs100 crore to facilitate large and medium investors in the textile field.
Since bulk of textile export is generated by small industries active apparel field the second PLI seems to be an attempt to cover small textile investors. The Indian government is encouraging its apparel exporters to go for high end products to fetch higher values. They want their textile exporters to compete with China and Vietnam that lead the high vale apparel market. Bangladesh, the next door neighbor of India still dominates the low end apparels and is also trying to move up to high end apparel exports.
The Indian Commerce and Industry Minister Piyush Goyal has said that the Union government intends to hold extensive consultations with the stakeholders to finalize the second incentive scheme for textile sector to be called PLI 2.0
Centre will hold extensive stakeholder consultations before finalizing the contours of the second edition of the Production Linked Incentive (PLI 2.0) scheme for the textiles sector. This scheme would then include manufacturers of apparel, home textiles having lower investment. The determination of turnover criteria would take some time before the scheme is announced.
