Team Siliconindia

• PLI Scheme for textiles attracts Rs 7,343 crore in investments, generates Rs 4,648 crore turnover, and boosts exports worth Rs 538 crore within months of rollout.
• Technical textiles lead the uptake, comprising over 56% of approved proposals and driving innovation in materials like carbon fibre and auto safety fabrics.
• Early amendments and expanded product eligibility fuel rapid adoption, positioning India as a rising global hub in MMF and advanced technical textiles.

India's Production Linked Incentive (PLI) Scheme for the textile industry is already bearing fruit just a few months after its launch, spurring investments of approximately Rs 7,343 crore, creating Rs 4,648 crore in turnover, and facilitating exports of Rs 538 crore. Started in September 2021 and running up to March 2030, the scheme provides five years of performance linked incentives to companies scaling up in Man Made Fibre (MMF) apparel, fabrics, and technical textiles.

Under the scheme, the companies that join have to achieve minimum investment levels 100 crore under Part I and Rs 300 crore under Part II with incentive disbursements linked to the achievement of at least 25 percent incremental turnover every year. Technical textiles have particularly gained, and the sector accounts for over half the sanctioned proposals (56.75 percent of 74 proposals in 42 companies).

The government has made efforts to make the implementation smoother. In February 2025, the amendments facilitated premature disbursement of Rs 54 crore, and the portfolio of technical textile products eligible under the scheme was widened through several HS code notifications. Industry sources point out that the scheme has supported automation, technology transfer, and development of new products. As Gautam Kalra of Madura Industrial Textiles had pointed out, it's "not merely money the Scheme has ensured technology transfer and innovation in India's MMF and technical textiles industry".

Shaleen Toshniwal, chairman of the Manmade & Technical Textiles Export Promotion Council, points out that the inclusion of a wide range of products under the scheme has helped India compete better on the international platform. In fact, the scheme is promoting indigenous production of cutting-edge materials such as carbon fibre, glass fibre, and auto safety textiles products essential for high-growth sectors and required to enable India to compete with established exporters such as China, Vietnam, and Bangladesh.

At an overall expenditure of Rs 10,683 crore spread over five years up to FY 2029-30, the scheme is expected to complement related initiatives like the National Technical Textiles Mission to help turn India into a technical textiles powerhouse globally. Together, these initiatives are setting the stage for a technologically superior, export-oriented textile value chain, while creating domestic value, employment, and world competitiveness.

Early indications are that the PLI scheme is quickly picking up steam, with its performance-linked payouts and ongoing product eligibility tweaking stimulating investor optimism and industrial development in the Indian textile industry.