PLI Scheme Boosts High-Value Textile Exports as Imports Decline in Key Product Categories

Government data shows exports of value-added textile products rising while imports of several niche items fall sharply under the PLI scheme.

A raincoat, a pair of men's briefs, a packet of clinical diapers and airbags may appear unrelated, but together they reflect emerging changes in India's textile manufacturing sector.

Official data indicates that the Production-Linked Incentive (PLI) scheme for textiles, introduced in September 2021, is supporting a gradual reduction in imports of niche textile products while increasing exports of value-added textile products. The programme builds on the government's manufacturing incentive approach previously implemented in the electronics sector.

Government data shows that India did not import synthetic raincoats and overcoats during 2022-25, compared with imports of $2.9 million during 2019-21.

Imports of men's outerwear declined by 99% to $0.1 million from $23.2 million, while imports of non-woven man-made fibre (MMF) fell 77% to $10.6 million from $46.9 million over the same period. Imports of dyed knit fabrics and women's synthetic jackets also decreased, with dyed knit fabric imports falling to $8.8 million from $26.5 million and women's synthetic jacket imports dropping to $2.9 million from $8.9 million.

At the same time, exports of several value-added textile products recorded growth. Exports of clinical diapers increased 193% to $7.7 million in the post-PLI period from $2.6 million before the scheme. Exports of narrow woven MMF fabrics rose 157% to $31.5 million from $12.2 million, while exports of men's synthetic briefs grew two-and-a-half times to $66.4 million from $26.4 million.

"There are some green shoots in some niche areas...", a government source said, "adding that these initial trends were very encouraging."

The five-year, ₹10,683 crore PLI scheme is designed to increase domestic production of MMF apparel, MMF fabrics and technical textiles. So far, the government has approved 170 applicants across three rounds. Gujarat has the highest number of approved applicants with 46, followed by Maharashtra (27) and Madhya Pradesh (23). These approved projects represent projected investments of ₹41,500 crore, compared with the original Cabinet estimate of ₹19,000 crore.

The third round of the scheme attracted applications from companies including Amrutanjan Health Care Ltd in Telangana, Future Electronics in Uttar Pradesh and Avsar HR Services Pvt Ltd in Bihar.

South Korea's HS Hyosung Advanced Materials Corporation has also received approval under the third round of the scheme.