Textiles PLI Scheme May Expand Product List

The textile PLI scheme might see a reduction in the investment threshold and include more man-made fabric (MMF) products, with considerations also being made to include apparel in the scheme.

The cabinet is expected to soon decide on whether to extend the benefits of production-linked incentive (PLI) schemes to additional products within the textiles, food processing, and pharmaceuticals sectors. The expansion of products under the PLI scheme is under consideration at the cabinet level, with proposals to include more products, particularly in the textiles sector.

Currently, the PLI programme encompasses 14 sectors, such as mobile manufacturing, electronic components, medical devices, automobiles, auto components, pharmaceuticals, specialty steel, telecom and networking products, and white goods. The budget allocation for these schemes has been increased by 88 per cent, reaching Rs 160.92 billion for FY25.

The official further stated that while the PLI schemes for electronics and white goods have been successful, those for textiles and steel are yet to gain momentum. Due to a lack of bids for the advanced chemistry cell battery PLI scheme, the government is seeking new proposals, whereas numerous startups have applied for the drone sector. Additionally, the textile PLI scheme might see a reduction in the investment threshold and include more man-made fabric (MMF) products, with considerations also being made to include apparel in the scheme.

The 14 existing PLI schemes were approved with a total outlay of Rs 1.97 trillion, and by the end of May, around Rs 97 billion had been disbursed to beneficiaries.

In a separate development, the commerce and industry ministry has proposed a Rs 34.89 billion PLI scheme for toys and a Rs 26 billion scheme for leather and footwear. According to another official, these proposed schemes are pending cabinet approval. A preliminary provision for these plans was included in the budget announced on July 23.