Ministry of Textiles Eases Rules for PLI Scheme to Boost MMF and Technical Textiles
SDG 9: Industry, Innovation and Infrastructure | SDG 8: Decent Work and Economic Growth
Institutions: Ministry of Textiles
The Ministry of Textiles has notified major amendments to the Production Linked Incentive (PLI) Scheme for Textiles, specifically targeting the Man-Made Fibre (MMF) Apparel, MMF Fabrics, and Technical Textiles sectors. The revisions aim to simplify the scheme, enhance the ease of doing business, and encourage faster investment execution. Key changes include the reduction of the minimum investment threshold for new applicants (e.g., from ₹300 crore to ₹150 crore in the Part-1 category). Furthermore, the qualifying criteria for incentives has been significantly eased by reducing the required incremental turnover from 25% to just 10% over the previous year, starting from FY 2025-26. The eligible product list has also been expanded, and the application portal has been reopened until December 31, 2025, to encourage wider industry participation.
These institutional and regulatory amendments are a responsive policy move to industry feedback, directly lowering financial entry barriers for investors and small and medium enterprises (SMEs), thereby ensuring the flagship PLI scheme achieves its developmental goal of increasing manufacturing scale and competitiveness.
What is the Production Linked Incentive (PLI) Scheme and why is it crucial for textiles? → The PLI Scheme is a government initiative that offers incentives (cash payouts) to domestic and foreign companies on incremental production from manufactured units in India. It is crucial for the textiles sector—especially MMF and technical textiles—as it aims to attract large-scale investment, enhance domestic manufacturing, and build India into a global export hub, fostering job creation and advanced technology adoption.
Relevant Question for Policy Stakeholders: Will the relaxed investment and turnover thresholds be sufficient to attract major global players and overcome persistent challenges in sourcing and logistics within the MMF value chain?
Follow the full news here: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2176795