The cabinet on Wednesday approved the production-linked incentive (PLI) scheme worth Rs 10,683 crore for textiles sector with an aim to boost domestic manufacturing and exports, Union Minister Anurag Thakur said. The decision was taken in a meeting which was chaired by Prime Minister Narendra Modi. The scheme will result in a fresh investment of above Rs 19,000 crore. It will also benefit an additional production turnover of over Rs 3 lakh crore in the next five years.
PLI scheme for textiles is part of the overall announcement of the scheme for 13 sectors made earlier during the Union Budget 2021-22, with an outlay of Rs 1.97 lakh crore. The approval of the scheme will have a significant positive impact on States like Gujarat, Uttar Pradesh, Maharashtra, Tamil Nadu, Punjab, Andhra Pradesh, Telangana, Odisha etc. It was also conveyed that the scheme would have higher investment priority towards Aspirational Districts as well as Tier 3 and Tier 4 cities and towns. The Union Cabinet had earlier approved PLI schemes in 13 key sectors for enhancing India’s manufacturing capabilities and exports. The textiles ministry would come with detailed guidelines of the scheme for these sectors later. The announcement of the PLI scheme for the textiles sector was part of the initial 13 sectors for which the PLI schemes were announced during the Union Budget 2021-22, with a minimum outlay of 1.97 lakh crore. India is expecting the minimum production to be around Rs. 37.5 lakh crore over 5 years and minimum expected employment over 5 years is nearly 1 crore, with the announcement of PLI Schemes for 13 sectors.
The scheme is expected to attract global investments, generate large scale employment opportunities as mentioned before and even enhance exports substantially. India’s export of man-made fibre (MMF) garments constitutes only 10 per cent of its total apparel exports, which was about $16 billion in 2019-20.