Textile PLI Scheme Drives Export Growth and Cuts Imports of Specialized Products
India’s Production-Linked Incentive (PLI) Scheme for textiles is delivering encouraging results, helping reduce the country’s dependence on imported textile products while driving significant growth in exports of high-value and technical textiles.
Launched in September 2021 with an outlay of ₹10,683 crore, the scheme was designed to promote domestic manufacturing of man-made fibre (MMF) apparel, MMF fabrics, and technical textiles. The initiative aims to attract fresh investments, expand production capacity, and enhance India’s competitiveness in global textile markets.
Government data reveals that imports of several specialized textile products have declined sharply during the 2022–25 period compared to the three years before the scheme’s introduction. Imports of synthetic raincoats and overcoats dropped to zero, compared with imports worth US$2.9 million during 2019–21.
Imports of men’s outerwear fell by 99% to just US$0.1 million from US$23.2 million, while imports of non-woven man-made fibre products declined by 77% to US$10.6 million from US$46.9 million. Imports of dyed knit fabrics also decreased significantly to US$8.8 million from US$26.5 million, while imports of women’s synthetic jackets fell to US$2.9 million from US$8.9 million.
At the same time, exports of value-added textile products have recorded strong growth. Exports of clinical diapers increased by 193%, reaching US$7.7 million compared to US$2.6 million before the scheme was launched. Exports of narrow woven MMF fabrics surged by 157% to US$31.5 million, while exports of men’s synthetic briefs rose to US$66.4 million from US$26.4 million.
The government noted that the rapid growth in exports reflects stronger domestic manufacturing capabilities and improved global competitiveness across premium textile segments.
Under the five-year PLI programme, 170 applicants have been approved across three rounds. Gujarat leads with 46 approved projects, followed by Maharashtra with 27 and Madhya Pradesh with 23.
Collectively, approved companies have proposed investments worth nearly ₹41,500 crore (US$4.39 billion), more than double the initial Cabinet projection of ₹19,000 crore. These investments are expected to support capacity expansion, generate employment opportunities, and strengthen India’s textile manufacturing ecosystem in the years ahead.