Union cabinet expected to extend PLI benefits in textiles

The cabinet is expected to extend the Production Linked Incentive (PLI) schemes to additional products in textiles, food processing, and pharmaceuticals, according to sources. Currently, the PLI programme covers 14 sectors, including mobile manufacturing, electronics, medical devices, automobiles, and pharmaceuticals.

Meanwhile, the Budget for PLI schemes has also been increased almost 88 per cent to Rs 16,092 crore for FY25. However, even s the PLI schemes for electronics and white goods have gained traction, those for textiles and steel are lagging. To address this, the textile PLI for man-made fabric (MMF) garments and technical textiles see lower investment threshold and the inclusion of more MMF products. The government is also considering adding apparel to the scheme.

The initial outlay for the 14 PLI schemes was Rs 1.97 lakh crore, with cumulative disbursements reaching approximately Rs 9,700 crore by the end of May. In addition, the commerce and industry ministry has proposed new PLI schemes worth Rs 3,489 crore for toys and Rs 2,600 crore for leather and footwear, which are pending cabinet approval. A token provision for these plans was included in the budget announced on July 23.