Lower turnover threshold aims to boost MSME participation and textile manufacturing.
The Ministry of Textiles has announced the reopening of applications for the Production Linked Incentive (PLI) Scheme for Textiles from 1 November to 31 December 2026, reducing the minimum turnover requirement from Rs 2 billion to Rs 1 billion. The revision aims to encourage greater participation from micro, small and medium enterprises (MSMEs) and mid-sized manufacturers.
Applications under Round 4 of the scheme will focus on manufacturing man-made fibre (MMF) apparel, MMF fabrics and technical textiles. The initiative seeks to strengthen domestic manufacturing capabilities, attract investment, generate employment and improve India’s competitiveness in global textile value chains.
Under the revised eligibility criteria, the minimum turnover threshold for the scheme’s Part 2 category has been halved to Rs 1 billion. Additionally, the scheme’s tenure has been extended until FY2033-34 exclusively for applicants approved under Round 4, providing a longer investment and operational horizon for manufacturers to establish and expand production capacities.
Ashwin Chandran, Chairman, Confederation of Indian Textile Industry (CITI), welcomed the changes, describing them as a confidence booster for the industry amid global market challenges. He said the relaxed eligibility requirements and extended scheme duration would encourage investment, employment generation and greater international competitiveness.
Chandran also highlighted the importance of the proposed National Fibre Scheme, announced in the Union Budget, in supporting the MMF segment. He noted that the combination of these policy initiatives could strengthen India’s position in the global textile market as the industry works towards its $350 billion target by 2030.
The MMF sector has also benefited from the reduction in Goods and Services Tax (GST) on MMF fibre and yarn to 5 per cent, which has addressed the inverted duty structure from the fibre stage onwards. However, upstream raw materials such as purified terephthalic acid (PTA) and monoethylene glycol (MEG) continue to attract 18 per cent GST, leaving an inverted duty structure at the raw material stage.
India’s textile and apparel exports increased by 17.51 per cent year-on-year in September 2026 in US dollar terms. However, export growth during April–September 2026 remained modest at 2.38 per cent, reflecting a decline in apparel exports compared with the corresponding period in 2025.
The revised PLI framework is expected to widen participation among smaller manufacturers, encourage capacity expansion and support the development of India’s MMF and technical textiles manufacturing ecosystem.