Indian textile companies set to receive PLI incentives

A dozen textile companies are on the verge of receiving the first-ever incentive payments under the Production Linked Incentive (PLI) scheme for textiles. The scheme, launched in 2021 with a budget of Rs 10,683 crore, aims to boost domestic manufacturing of man-made fabrics (MMF), garments, and technical textiles.

Despite a lukewarm response from private players initially, the government is now poised to disburse incentives to companies that have met the scheme's investment criteria. The development comes after a cabinet secretary-led committee flagged concerns about the slow pace of investments in the textile sector.

The government has already received applications from 40 companies, with investments totaling approximately Rs 6,000 crore. However, some players expressed reservations about investing in the proposed textile categories due to a lack of expertise.

The PLI scheme for textiles holds significant promise for India's manufacturing sector. MMFs, such as viscose, polyester, and acrylic, are essential components of apparel exports, accounting for a fifth of the country's total. Technical textiles, on the other hand, have applications in diverse industries, including aviation, defense, and infrastructure. As the government prepares to launch another PLI scheme specifically for the apparel segment, with a budget of Rs 4,000 crore, the textile industry is poised for further growth and development.