PLI Scheme for Textiles: The Government of India (GoI) has approved a Production-Linked Incentive (PLI) scheme for the textiles sector worth Rs 10,683 crore.
- This is part of a larger PLI scheme for 13 sectors, with a total budgetary outlay of 1.97 lakh crore.
- It was announced for 13 sectors during Budget 2021-22.
- The PLI scheme was approved in order to boost domestic manufacturing and exports.
- It has been approved for Textiles for MMF (man-made fibre) Apparel, MMF Fabrics, and 10 segments or products of Technical Textiles.
- As a part of incentives approved for the textiles sector, the payout will be spread over a period of five years.
Significance of the scheme:
- It will provide an immense boost to domestic manufacturing, and prepare the industry for making a big impact in global markets in sync with the spirit of Atmanirbhar Bharat.
- It will lead to the creation of new opportunities for employment and trade.
- As the textiles industry employs women, the scheme will encourage women and increase their participation in the formal economy.
- It will not only help attract more investment into this sector but it will also result in a fresh investment of more than Rs.19,000 crore, and a cumulative turnover of over Rs.3 lakh crore, over a period of five years.
- This Scheme prioritizes investment in aspirational districts, tier 3, tier 4 towns as well as rural areas.
Who are eligible to participate in the scheme?
- First Part of the Scheme: Any person or company willing to invest a minimum of Rs 300 crore in the plant, machinery, equipment and civil works (excluding land and administrative building cost) to produce products of MMF fabrics, garments and products of technical textiles will be eligible to participate in the first part of the scheme.
- Second Part of the scheme: Investors willing to spend a minimum of Rs 100 crore under the same conditions shall be eligible to apply in the second part of the scheme.
- In addition, priority will be given for investment in Aspirational Districts, Tier 3, Tier 4 towns, and rural areas and due to this priority Industry will be incentivized to move to the backward areas.
What is the PLI scheme?
- Production-Linked Incentive (PLI) is a way to reward increased production in a specified sector and has ramifications for economic growth and job creation.
- The PLI for textiles is aimed at expanding MMFs and technical textiles’ value chain.
- The objective of the scheme is to help India gain a dominant status in the global textile trade.