Union Cabinet approves Rs 10,683 crore PLI scheme to boost textile industry & exports

The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday, 8 September 2021, approved the Production Linked Incentive (PLI) Scheme worth over Rs 10,600 crore for the textiles sector, in a bid to boost domestic manufacturing and exports. 

The cabinet has approved the PLI scheme for MMF (man-made fibre) apparel, MMF fabrics, and ten segments/products of technical textiles with a budgetary outlay of ₹10,683 crores that will be provided over 5 years.

“So far, we have primarily focused on cotton textile. But 2/3 share of the international textile market is of man-made and technical textile. This PLI scheme has been approved so that India can also contribute to the production of man-made fibers," said Union Textiles Minister Piyush Goyal.

Goyal said that fabric and garments made from these fibres would be a focus of the scheme in order to build world-class facilities in the country.

He added that factories based around aspirational districts or Tier-3 and Tier-4 cities will be prioritized under the scheme, which will benefit states like Gujarat, Uttar Pradesh, Maharashtra, Tamil Nadu, Punjab, Andhra Pradesh, and Telangana. “We hope that this decision will produce some global champions," Goyal said.

India to sign free trade agreements

He also said that the government was working on free trade agreements (FTAs) with advanced economies such as the UK, the US, and the European Union that will help India in getting required imports as well boost exports. FTA would also help the textile sector, the minister said, in getting a level playing field that faced unequal duties in some of these markets.

PLI scheme for textiles is part of the overall scheme for 13 sectors announced during the Union Budget 2021-22, with an outlay of ₹1.97 lakh crore. The scheme, parts of which have already been approved by the cabinet is expected to boost manufacturing activities, add jobs and help scale up exports. 

(With inputs from agency)