The central government has begun pan-India implementation of the Production Linked Incentive (PLI) Scheme for Textiles, aimed at boosting domestic manufacturing of man-made fibre (MMF) apparel, fabrics, and technical textile products. This was confirmed by Pabitra Margherita, Minister of State for Textiles, in a written response in the Rajya Sabha.
PLI Scheme to Enhance Scale and Competitiveness
According to the minister, the scheme targets increased scale and competitiveness in the sector. Out of 74 approved applicants under the scheme, 24 are Micro, Small and Medium Enterprises (MSMEs). The scheme is projected to generate a turnover of ₹2,16,760 crore, including exports, over its implementation period.
Approximately 22% of the Ministry of Textiles’ ₹5,272 crore budget estimate for FY 2025–26 has been allocated to the PLI scheme. This marks a 19% increase over the previous fiscal’s budget estimate of ₹4,417.03 crore.
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Support for Exports and Market Expansion
To enhance competitiveness in apparel and made-up exports, the government is also implementing the Rebate of State and Central Taxes and Levies (RoSCTL) scheme. For textile products not covered under RoSCTL, the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme is applicable.
In addition, financial support is being extended to Export Promotion Councils and trade bodies through the Market Access Initiative Scheme, which helps facilitate participation in trade fairs, exhibitions, and buyer-seller meets at national and international levels.
New Cotton Mission and Loom Incentives
In response to stagnant cotton productivity, the Union Budget 2025–26 has introduced a five-year Cotton Mission aimed at boosting productivity, especially for extra-long staple varieties. The mission will be supported by science and technology-based interventions to aid farmers.
To support domestic production of technical textiles, two more types of shuttle-less looms have been added to the list of fully exempted textile machinery. This move is intended to improve access to affordable machinery for producing agro-textiles, medical textiles, and geo textiles.
