Textile PLI scheme likely to be extended by four years with easier norms for MSMEs

New Delhi: The production-linked incentive (PLI) scheme for textiles is likely to be extended for around four years with easier eligibility criteria to encourage greater participation by micro, small and medium enterprises, according to people aware of the development. The existing scheme is operational until 2029-30. The proposed extension would also mark the fourth round of the scheme.

The government approved 170 applicants in the first three rounds. Applicants who were left out in previous rounds are also likely to get another opportunity to qualify for incentives in the next one. The changes aim to make the scheme more industry-friendly and improve its overall effectiveness, said the people.

Also read: India's textile industry targets $350 billion by 2030 as exports rebound, costs rise: Report


Approved in September 2021 with an outlay of ₹10,683 crore, the PLI scheme for textiles provides for a two-year gestation period (FY23-FY24), followed by five performance years (FY25-FY29), and remains operational until FY30.

The scheme seeks to boost large-scale manufacturing of man-made fibre (MMF) apparel, MMF fabrics and technical textiles, helping enhance India's competitiveness in global textile value chains.

The government is tweaking the rules to make it more MSME-friendly, including lowering the minimum investment and turnover threshold, said an official.

Out of the 170 applicants who received approval so far, 46 were from Gujarat, followed by 27 from Maharashtra and 23 from Madhya Pradesh. Collectively, these applicants have committed investments of around ₹41,500 crore, more than double the original Cabinet projection of ₹19,000 crore.