The Union Cabinet chaired by Prime Minister Narendra Modi has given its approval to introduce Production-Linked Incentive (PLI) scheme in 10 key sectors, including textiles, for enhancing India’s manufacturing capabilities and enhancing exports. Textile industry associations have welcomed the scheme.
“The PLI scheme will be implemented by the concerned ministries/departments and will be within the overall financial limits prescribed. The final proposals of PLI for individual sectors will be appraised by the Expenditure Finance Committee (EFC) and approved by the Cabinet. Savings, if any, from one PLI scheme of an approved sector can be utilised to fund that of another approved sector by the Empowered Group of Secretaries,” an official release said.
For ‘Textile Products: MMF segment and technical textiles’, financial outlay of Rs. 10,683 crore has been approved for a five-year period.
The Indian textile industry is one of the largest in the world and has a share of ~5 per cent of global exports in textiles and apparel. But India’s share in the manmade fibre (MMF) segment is low in contrast to the global consumption pattern, which is majorly in this segment. “The PLI scheme will attract large investment in the sector to further boost domestic manufacturing, especially in the MMF segment and technical textiles,” the release said.
“The PLI scheme will help the Indian apparel sector to build the much-needed scale. It will also bring specialisation as a strategy to garner focus on top MMF products which are in great demand globally. MMF apparels is a Rs. 3 lakh crore opportunity in the US market alone,” said ITF convenor Prabhu Dhamodharan. “We are confident that the Indian apparel sector will use this opportunity to build capabilities in MMF sector to achieve double digit growth in exports.”
