Textiles Ministry likely to get Rs 5,080 cr allocation for FY26, including boost for PLI Scheme

The Ministry of Textiles is expected to receive a 15 per cent increase in budget allocation for FY26, reaching Rs 5,080 crore. This includes a 33 per cent rise in funds for the Production Linked Incentive (PLI) scheme for textiles. In FY25, the ministry's allocation was Rs 4,417.03 crore.

The PLI scheme, aimed at boosting domestic production of man-made fibre (MMF) apparel, technical textiles, and MMF fabrics, will see an increase in funding from Rs 45 crore to Rs 60 crore in FY26.

Introduced in 2021, the PLI scheme has an outlay of Rs 10,683 crore over five years, designed to scale up India's textiles industry, enhancing its competitiveness on the global stage. The government is targeting $600 billion in textiles exports by 2047 and expanding the domestic market to $1.8 trillion, up from $110 billion in 2022.

To support the sector's growth, the government is also considering a new scheme to promote local manufacturing of textiles machinery, such as auto-corners and spinning machines. This initiative may include an interest subsidy of 7 per cent for at least 10 years to help domestic manufacturers.