Textiles Ministry Plans to Reopen PLI Scheme with Relaxed Investment Norms
The Ministry of Textiles is preparing to reopen applications for its ₹10,683 crore Production Linked Incentive (PLI) scheme for Man-Made Fibre (MMF) apparel, MMF fabrics, and technical textiles, introducing lower investment and turnover requirements to encourage greater industry participation.
Under the revised eligibility criteria, the minimum investment thresholds are proposed to be reduced to ₹100 crore and ₹150 crore. According to Union Textiles Minister Giriraj Singh, the changes are intended to attract more manufacturers and strengthen domestic production in high-growth segments where India competes with global textile hubs such as China and Vietnam.
To support wider participation, the Ministry is considering opening a fresh application window, allowing additional companies to apply under the revised norms. The Minister noted that the scheme has already witnessed encouraging interest from businesses in Madhya Pradesh and southern India.
Since its launch in 2021, the PLI scheme has completed three rounds of applications, with the latest round closing in March 2026. Following the approval of 22 new applicants, a total of 96 companies have been selected under the programme, representing committed investments of ₹12,822.67 crore and an expected turnover of ₹58,294.18 crore.
While the scheme has generated strong investment commitments, incentive payouts have remained limited. So far, only ₹54 crore has been provisionally disbursed to two companies that met the required investment and sales targets during FY 2024–25. Most approved projects are still under implementation or gradually scaling up production.
Giriraj Singh said the initial rollout of the scheme was slowed by pandemic-related disruptions, but implementation has since gained momentum. The approved manufacturing facilities are expected to become fully operational by 2027, supporting India’s long-term objective of expanding its global competitiveness in MMF and technical textiles.
The Ministry will continue to focus the PLI scheme on MMF apparel, MMF fabrics, and technical textiles, while the earlier proposal to extend incentives to cotton and other apparel segments has been dropped.