The second tranche of PLI to cover garments, made-ups, and textile accessories; have lower investment, and turnover criteria.
While the existing edition of the PLI scheme for textiles is limited to the production of man-made fiber fabrics and apparel and technical textiles, the second edition being proposed will be open for garments, made-ups, and accessories of all materials.
The Textile PLI (Production Linked Incentive) Scheme 2.0 was launched by the Indian government in March 2021 as a part of the Atmanirbhar Bharat Abhiyan (Self-Reliant India Campaign) to boost the country’s textile manufacturing sector and make it globally competitive. The scheme has a total outlay of INR 10,683 crores and is applicable for 5 years starting from 2021-22.
The objective of the scheme is to promote domestic manufacturing, attract investments in the textile sector, and create employment opportunities. The scheme aims to achieve this by providing financial incentives to eligible textile manufacturers based on their incremental sales of certain textile products.
Under the Textile PLI Scheme 2.0, eligible textile manufacturers will be incentivized for the production of 7 key product categories, including MMF (man-made fiber) apparel, MMF fabrics, silk, cotton, wool, technical textiles, and home textiles. The incentives will be provided on incremental sales over the base year (2019-20) for 5 years.
The financial incentives will be provided at a rate of 5 percent to 10 percent of the incremental sales value, depending on the category of the textile product. The incentives will be disbursed annually for 5 years, subject to the achievement of certain performance parameters.
To be eligible for the scheme, textile manufacturers must make a minimum investment of ₹50 crores in plant and machinery for the production of eligible textile products. The scheme is open to both new and existing textile manufacturers.
Overall, the Textile PLI Scheme 2.0 is expected to boost domestic manufacturing, increase exports, and create employment opportunities in the textile sector, thereby contributing to the growth of the Indian economy.
The second edition of the production-linked incentive (PLI 2.0) scheme for textiles is likely to have an outlay of ₹4,307 crore and will cover the manufacture of garments, made-ups, and textiles accessories of all materials, natural or man-made, per the Cabinet note finalized by the Textiles Ministry.
Textiles PLI 2.0. textile industry set to get second tranche of PLI worth INR 4,307 crore
