Government to adjust textile PLI scheme to attract private investors

A cabinet note has been circulated seeking approval to introduce more flexibility in the scheme by extending the harmonised system (HSN) codes of MMF to encompass as many categories as possible.

After private players received a lukewarm response, the government is planning to enhance the appeal of the production-linked incentive (PLI) scheme for textiles by introducing greater flexibility. It is anticipated that this move will attract investment and strengthen manufacturing in the labour-intensive sector.

The textiles ministry has requested the approval of the cabinet to include additional product lines within the scheme. Launched two years ago, the scheme aimed to promote the domestic manufacturing of man-made fabric (MMF) garments and technical textiles, with a budgetary allocation of Rs 10,683 crore. MMF comprises viscose, polyester, and acrylic, which are chemically derived. According to exporters, MMF apparel currently constitutes one-fifth of India’s apparel exports. On the other hand, technical textiles represent a modern type of textile that can be utilised in the production of personal protective equipment (PPE), airbags, bullet-proof vests, and can find applications in sectors such as aviation, defence, and infrastructure.

A cabinet note has been circulated seeking approval to introduce more flexibility in the scheme by extending the harmonised system (HSN) codes of MMF to encompass as many categories as possible.

The official explained that the rationale behind the decision to provide flexibility in HSN codes is rooted in the dynamic nature of the textile industry. The industry experiences constant changes in fashion and fabric demand, making it imprudent to confine incentives to a limited number of textile categories.