The Union Cabinet today approved the PLI Scheme for Textiles which will boost domestic manufacturing and exports through MMI apparel, MMI fabrics, as well as 10 segments/products of technical fabrics with an outlay of around Rs 10,683 crore for the textile sector.
For the textiles sector, on Wednesday, September 8, the government approved a program called production-linked incentives (PLIs). In addition to directly creating jobs, the scheme will support multiple lakhs more indirect jobs as well. As part of the incentives approved for the textiles sector, the payout will be spread over a five-year period.
PM Narendra Modi presided over the Cabinet meeting that took the decision. There are 10 segments or products of technical textiles under the PLI scheme: textiles, MMF (man-made fibre) apparel, MMF fabrics, and MMF fabrics. Through the project, the country will be able to manufacture high-value MMF fabrics, garments, and technical textiles.
Over the next five years, the PLI Scheme will invest approximately Rs.19,700 crore in textiles, and a cumulative turnover of over Rs.3 lakh crore is expected.
Production-linked incentive schemes for textiles and other sectors were announced in the Budget of 2021-22, which allocated about 1.97 lakh crore.
The PLI scheme for these 13 sectors is expected to result in a production level of around 3.5 lakh crore within five years.
It will prioritize investments in aspirational districts, towns and villages in tier 3 and tier 4 as well as rural areas. Since a majority of textile workers are women, the PLI program encourages women and will help increase their participation in the formal economy.
The tax will specifically affect states such as Gujarat, Maharashtra, Uttar Pradesh, Tamil Nadu, Punjab, and Odisha, among a few others, according to the government.
Frequently Asked Questions
PLI scheme for Textiles will promote the production of high-value MMF fabrics, Garments, and Technical Textiles in the country.
The Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing proposes a financial incentive to boost domestic manufacturing and attract large investments in the electronics value chain including mobile phones, electronic components, and ATMP units.