Union Textile Minister Giriraj Singh
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The Textiles Ministry is planning to invite a fresh round of applications under its ₹10,683 crore Production Linked Incentive (PLI) scheme focussing on Man-Made Fibre (MMF) apparel, MMF fabrics, and technical textiles, to enable industry benefit from the relaxed investment and turnover criteria, Textiles Minister Giriraj Singh has said.“We have liberalised the investment criteria, reducing the investment thresholds to ₹150 crore and ₹100 crore. We are already seeing strong participation from Madhya Pradesh and southern India. If required, we may open another window to encourage more applications,” Singh told businessline.The scheme has so far seen three rounds of applications, with the last round closing in March this year. The government has approved 22 new applicants under round three of the PLI scheme for textiles. With this latest round of approvals, a total of 96 companies have now been selected with a cumulative committed investment of ₹12,822.67 crore and a projected turnover of ₹58,294.18 crore.The PLI scheme for textiles was launched in 2021 with an outlay of ₹10,683 crore, aimed at boosting domestic manufacturing of MMF apparel, MMF fabrics, and technical textiles, which are segments where India has historically lagged behind competitors such as China, Vietnam, and Bangladesh, despite being one of the world’s largest producers of cotton and natural fibres. Actual disbursements under the scheme have remained limited so far, as most approved units are still in the process of setting up operations or ramping up production. “Disbursed provisional incentive of Rs.54 crore to two applicants who completed their threshold investment and sales in FY 2024-25,” according to the 2025 year-end document of the Textiles Ministry.Officials attribute the slow pace partly to the pandemic-induced disruptions in the initial years of the scheme, and partly to the typical two-year gestation period needed for such large manufacturing projects to become fully operational.“Although we launched the PLI scheme in 2021, progress was initially slowed by the pandemic. It has since picked up pace, and we expect the registered units to be fully operational by 2027,” Singh said.The earlier plan of widening the scheme to include apparels and garments made of cotton and other material, however, seems to have been dropped by the Textiles Ministry. “The government’s focus is on promoting the man-made and technical textiles sector. That is where the huge untapped opportunity is,” a source said.Published on July 19, 2026
