Govt Unveils Major Changes to Textile PLI Scheme to Boost Investments

In a move aimed at reinvigorating India’s textile manufacturing sector, the Ministry of Textiles has revised the Production Linked Incentive (PLI) Scheme for man-made fibre (MMF) apparel, fabrics, and technical textiles. 

The updated framework is designed to make the scheme more accessible, investment-friendly, and aligned with the evolving needs of the industry.

Simplified Investment and Turnover Criteria

The government has relaxed key financial thresholds to encourage wider participation from manufacturers and investors. The minimum investment requirement has been cut in half from ₹300 crore to ₹150 crore for large units and from ₹100 crore to ₹50 crore for smaller projects. Additionally, companies will now need to demonstrate a 10% rise in annual turnover to qualify for incentives, compared with the earlier 25% benchmark.

The move would simplify compliance, attract more mid-sized players, and help faster execution of projects under the scheme. The changes will take effect from August 1, 2025.

Expanded Product List and Operational Flexibility

The revised framework adds new product categories to boost innovation and exports in the synthetic textile segment. 8 fresh HSN codes for MMF apparel and nine for MMF fabrics have been included in the list of eligible items. In a key procedural change, businesses can now establish project units within their existing corporate structures, offering greater operational flexibility.

The ministry has also extended the deadline for submitting applications under the PLI Scheme until December 31, 2025, to ensure that more companies can participate.

Performance and Industry Impact

Introduced in September 2021, the PLI Scheme for Textiles is intended to expand India’s manufacturing capacity, promote exports, and generate employment. According to the ministry, 74 companies have already been selected under the initiative, with a combined committed investment of ₹28,711 crore.

Read More: Government to Unveil ₹7,350 Crore Rare Earth Magnet Scheme to Boost Production!

Conclusion

By lowering entry barriers and widening eligibility, the government aims to attract new domestic and international investors into India’s textile ecosystem. The revamped PLI Scheme is expected to accelerate growth, create large-scale employment, and position India as a global hub for innovation-driven textile manufacturing.

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