The Ministry of Textiles is preparing to reopen applications under its ₹10,683 crore Production Linked Incentive (PLI) Scheme for Man-Made Fibre (MMF) apparel, MMF fabrics and technical textiles with revised eligibility norms aimed at encouraging wider industry participation.
The proposed changes include lower investment thresholds of ₹100 crore and ₹150 crore, replacing the earlier higher investment requirements. According to Union Textiles Minister Shri Giriraj Singh, the revised criteria are intended to strengthen India’s manufacturing competitiveness in sectors where the country competes with global textile producers such as China and Vietnam.
The Ministry is also considering opening a fresh application window, allowing additional companies to apply under the revised norms. Officials indicated that the response from industry has been encouraging, particularly from Madhya Pradesh and southern India.
The PLI Scheme, launched in 2021, has completed three rounds of applications, with the latest round closing in March 2026. Following the approval of 22 new applicants in the third round, the total number of approved companies has reached 96.
Collectively, these companies have committed investments of ₹12,822.67 crore, with projected turnover estimated at ₹58,294.18 crore.
While the scheme has attracted substantial investment commitments, incentive disbursements have remained limited so far. Only ₹54 crore has been provisionally released to two companies that met the prescribed investment and sales targets during FY 2024–25. Most of the approved projects remain under implementation or are in the initial stages of production.
Speaking on the progress of the scheme, Shri Giriraj Singh noted that its early implementation was affected by disruptions caused by the COVID-19 pandemic. However, he said project execution has since gained momentum, with the approved manufacturing units expected to become fully operational by 2027.
The Minister also clarified that the Ministry will continue to prioritise MMF apparel, MMF fabrics and technical textiles under the PLI scheme. The earlier proposal to expand the incentive programme to include cotton and other apparel segments has been dropped.
The reopening of the application window with relaxed investment criteria is expected to attract a broader base of manufacturers, promote investment in high-value textile segments and support India’s long-term objective of strengthening domestic production while enhancing its global competitiveness in man-made fibre and technical textile products.
