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Union Cabinet gives green signal to Rs 10,683 crore PLI scheme for textiles

09 Sep 2021 Evaluate

In order to boost domestic manufacturing of man-made fibres (MMF), garments, and technical textiles, the Union Cabinet has given green signal to the production-linked incentive (PLI) scheme for textiles for a budgetary outlay of Rs 10,683 crore. Incentives worth Rs 10,683 crore will be provided over five years for manufacturing these products. The scheme is focused at expanding MMFs and technical textiles' value chain and will help India regain its dominant status in the global textile trade, at a time when India's share of global exports has gradually declined over the years.

It is estimated that the scheme will attract fresh investment of more than Rs 19,000 crore, a cumulative turnover of over Rs 3 trillion, and create additional employment opportunities of more than 750,000 jobs in this sector. Technical textile is a new-age material that can be used for production of personal protective equipment kits, airbags, bulletproof vests, and can also be used in sectors such as aviation, defence, and infrastructure. MMFs, such as viscose, polyester, and acrylic, are made from chemicals. According to the Federation of Indian Export Organisations (FIEO), MMF apparels currently account for a fifth of India’s overall apparel exports.

Textile Minister Piyush Goyal said ‘So far, we have primarily focused on cotton textiles. Today, two-thirds of the international trade market is of man-made and technical textiles. In such a situation, India should also contribute to the entire ecosystem. The PLI scheme will make domestic companies global champions’. He added companies near tier 3 or 4 cities will be prioritised, and special attention will be given to how much employment can be generated. The scheme will also positively impact states like Gujarat, Uttar Pradesh, Maharashtra, Tamil Nadu, Punjab, Telangana, and Odisha, among others.

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