NEW DELHI: The Cabinet has approved a production-linked incentive (PLI) scheme for man-made fibers and technical textiles sectors, which will provide incentives worth Rs 10,683 crore to industry over five years. “It is estimated that over the period of five years, the PLI scheme for textiles will lead to fresh investment of more than Rs 19,000 crore, cumulative turnover of over Rs 3 lakh crore will be achieved under this scheme and, will create additional employment opportunities of more than 7.5 lakh jobs in this sector and several lakhs more for supporting activities. The textiles industry predominantly employs women, therefore, the scheme will empower women and increase their participation in formal economy,” Textile Minister Piyush Goyal told reporters after the Cabinet meet.
The scheme will help India to regain its exports share, which it is fast losing out over the past decade to Bangladesh and Thailand. “PLI scheme for textiles will promote production of high value MMF fabric, garments and technical textiles in country. The incentive structure has been so formulated that industry will be encouraged to invest in fresh capacities in these segments,” Goyal said.
The new PLI proposes to incentivise eligible manufacturers by paying between 3% and 11% incentive on incremental production. It has two categories of investments above Rs 100 crore and Rs 300 crore. In addition, priority will be given for investment in ‘aspirational districts’, small towns, and rural areas. “Companies which will set up factories in aspirational districts and Tier-III and Tier-IV will be given priority while allocating incentives. The number of jobs created will also be taken into consideration,” Goyal said.
He said the scheme will positively impact states like Gujarat, UP, Maharashtra, Tamil Nadu, Punjab, AP, Telangana, Odisha. The scheme has generated positive response from domestic industry. “The MMF apparels account for 20% of our overall apparel exports and we should increase its share to 50% in next 5 years,” said Federation of Indian Export Organisations (FIEO) President A Sakthivel.
Rs 19,000 cr Estimated fresh investment over five years
7.5 lakh Total number of additional jobs to be created