Beroe: India’s PLI scheme to boost textile industry
The PLI scheme of the Indian government aims to strengthen the domestic textile industry by offering incentives to the manufacturing and exporting of some textile products that are made up man-made fibre.
Raleigh, N.C
The PLI scheme of
the Indian government aims to strengthen the domestic textile industry by
offering incentives to the manufacturing and exporting of some textile products
that are made up man-made fibre, according to Beroe Inc.
To mitigate the lasting effects of the Covid-19 situation around the
world, the government of India has come up with several steps that include
introducing the PLI scheme for various sectors which includes the textile
sector as well. PLI here stands for Production Linked Incentive.
According to Pakshaal S Shah, Principal Analyst, Beroe, the
government is trying to include cotton-based products in the PLIC scheme as
well. The government has an expectation that the demand for both natural and
man-made fibres will improve in the coming years.
The government has also proposed some other initiatives like
National Technical Textiles Mission and Amended Technology Up-gradation Fund
Scheme. The objectives that the PLI wants to achieve are listed below-
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PLI will
give incentives to the companies in case of incremental sales derived from the
manufacturing of products in domestic units.
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An
incentive of 7% will be given in the first year if the firms with annual sales
of Rs 5 billion are able to raise their turnover by 50%.
?
The scheme
will attract foreign investment and encourage domestic producers to expand
their units.
?
An
incentive that equals 11% of investments will be given to big companies that
come up with greenfield projects.
?
9 percent
incentive for brownfield projects will be given to companies with annual sales
of Rs 1 billion.
The government has also planned to launch 7 mega textile parks in the coming 3 years. These
parks will have world-class infrastructure and plug-and-play facilities. The
parks will also be supported with facilities like common utilities, power
supply, research and development labs, and uninterrupted water. According to
Pakshaal S Shah of Beroe, the pandemic has adversely affected businesses. This
scheme is a great initiative by the government and if planned well, this scheme
will not only support these businesses but will even help them grow. He also
said that the textile industry of India is quite resilient. The PLI scheme and
other initiatives will bounce back very strongly.
Source – PR Newswire
Also Read:
https://indiantextilejournal.com/trade-talk/turkish-textile-will-crown-its-success-in-itm-2021
https://indiantextilejournal.com/interviews/india-s-appeal-in-global-textile-industry-is-growing
