The Ministry has reduced the minimum investment threshold by half—from Rs 3 billion to Rs 1.50 billion in the Part-1 category and from Rs 1 billion to Rs 500 million in the Part-2 category.
The Clothing Manufacturers Association of India (CMAI) has welcomed the announcement by the Ministry of Textiles regarding significant amendments to the Production Linked Incentive (PLI) Scheme for textile products. These changes are aimed at addressing industry challenges, expanding coverage, and encouraging fresh investments in the man-made fibre (MMF) and technical textiles segments.
Importantly, the Ministry has reduced the minimum investment threshold by half—from Rs 3 billion to Rs 1.50 billion in the Part-1 category and from Rs 1 billion to Rs 500 million in the Part-2 category. The incremental turnover criteria for availing incentives have also been lowered from 25 per cent to 10 per cent. These changes, effective from August 1, 2025, are expected to significantly reduce entry barriers and enable wider participation from small and mid-sized manufacturers. The application portal for the scheme will remain open until December 31, 2025.
Commenting on the announcement, Santosh Katariya, President, CMAI, said, “The reduction in investment slabs and turnover requirements has been a long-standing demand of the industry. The amendments are poised to give a strong fillip to the MMF sector, fostering new investments, creating jobs, and improving the international standing of Indian manufacturers.”
The revised scheme expands the list of eligible products by including 8 new HSN codes for MMF apparel and 9 new HSN codes for MMF fabrics. It also allows applicants to establish project units within existing companies which is an important step towards enhancing ease of doing business and expediting execution timelines.
CMAI believes the revisions will strengthen India’s position in the global textile value chain.