PLI scheme for textiles: A correct remedy at the right time
The Government of India’s approval for the Rs 10,683 crore Production Linked Incentive (PLI) scheme is expected to provide a shot in the arm for manmade fibre (MMF) and technical textiles sectors. Now the onus is on the industry to rise to the occasion, says Rakesh Rao.
On September 8, 2021, the Union Government of India approved the Production Linked Incentive (PLI) scheme for textiles industry taking steps forward towards the vision of an ‘Aatmanirbhar Bharat’. With a budgetary outlay of Rs 10,683 crore, the scheme is applicable for manmade fibre (MMF) apparel, MMF fabrics and 10 segments/ products of technical textiles. PLI scheme along with RoSCTL, RoDTEP and other measures announced of the government (such as providing raw material at competitive prices, skill development etc) are expected to give a big boost to the textiles manufacturing sector.
PLI scheme for textiles is part of the overall announcement of PLI Schemes for 13 sectors made earlier during the Union Budget 2021-22, with an outlay of Rs 1.97 lakh crore. With the announcement of PLI Schemes for 13 sectors, minimum production in India is expected to be around Rs 37.5 lakh crore over 5 years and minimum expected employment over 5 years is nearly 1 crore.
PLI scheme for textiles is aimed at promoting production of high value MMF fabric, garments and technical textiles in the country. The incentive structure has been so formulated that industry will be encouraged to invest in fresh capacities in these segments. This will give a major push to growing high value MMF segment which will complement the efforts of cotton and other natural fibre-based textiles industry in generating new opportunities for employment and trade, resultantly helping India regain its historical dominant status in global textiles trade.
Technical textiles – which find applications in several sectors such as infrastructure, water, health and hygiene, defense, security, automobiles, aviation, etc – improve the efficiencies in those sectors of economy. To promote investment and encourage R&D in this lucrative sector, the government has also launched a National Technical Textiles Mission in the past. The approval of the PLI scheme will further help in attracting investment in the technical textiles segment.
CATEGORIES Automation
