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Exporters are Happy with the Production Linked Incentive (PLI) Scheme

aepc welcomes pli


Shri Manoj Patodia, Chairman, Texprocil

Shri Manoj Patodia, Chairman, Texprocil

The Government has announced the Production Linked Incentive (PLI) Scheme for man-made garments and fabrics and also technical textiles. This incentive based scheme is open only to Indian manufacturers.

There are two types of investment possible with different sets of incentive structures.

In the first part, any firm/company willing to invest minimum Rs.300 Crore in Plant, Machinery, Equipment and Civil Works (excluding land and administrative building cost) to produce products of Notified lines (MMF Fabrics, Garment) and products of Technical Textiles, shall be eligible to apply for participation.

In the second part, any firm /company willing to invest a minimum Rs.100 Crore shall be eligible to apply for participation in this part of the scheme. In addition, priority will be given for investment in Aspirational Districts, Tier 3, Tier 4 towns, and rural areas. Due to this priority Industry will get incentivized to move to the backward areas. This scheme is expected to positively impact States like Gujarat, Uttar Pradesh, Maharashtra, Tamil Nadu, Punjab, Andhra Pradesh, Telangana, and Odisha which have textile clusters.

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 is expected to be achieved under this scheme. The scheme is also expected to create additional employment opportunities for more than 7.5 lakh jobs in the 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 the formal economy. The PLI Scheme for Textiles is a landmark effort to create “Champion Companies” in the Textile Sector especially in the man- made fibre segment. It’s extension to Technical Textiles sector will also give the much needed focus and fillip to this fast emerging sector The Technical Textiles segment is a “new age” textile, whose application in several sectors of economy, including infrastructure, water, health and hygiene, defense, security, automobiles, aviation, etc. will improve the efficiencies in those sectors of economy.

The industry should come forward and take advantage of the scheme and set up world class companies to cater to both the domestic and export markets. Trade Data The data released by the Ministry of Commerce, on top 10 major commodity groups covering more than 80% of total exports, have shown positive growth in August 2021 over corresponding month of previous year. India’s merchandise exports in August touched US $ 33.14 billion, 45.17% higher than August 2020 and 27.5% over the pre-pandemic level of August 2019.

The exports of cotton textiles (yarn/fabrics/ madeups, etc.) under the purview of the Council achieved a level of US $ 1298 million during August 2021 recording a growth of 56% over August 2019 (US $ 832 million) and 21% over August 2018 (US $ 1072 million).

The cumulative exports of cotton textiles during April–August 2021 have achieved a level of US $ 5973 million, recording a positive growth of 43% over the same period in 2019 and 24% over 2018 wherein the exports were valued at US $ 4177 million and US $ 4811 million respectively.

Prashant Agarwal MDPrashant Agarwal, Managing Director, BRFL Textiles Pvt. Ltd 

“We welcome this visionary scheme by the government, and believe that this is a giant stride in the right direction, that can elevate the textile industry to greater heights. The scheme will facilitate large scale investments, scale up the existing capabilities, boost employment, and enhance exports. This will help in strengthening the global leadership of Indian textiles at a time when the Indian economy is getting back to normalcy. Historically, Indian policies have been biased towards cotton dominated value chain. However, we are glad that the PLI scheme has been well thought through with a special emphasis on MMF, which makes up around 65%-70% of global demand. High value MMF and technical textiles could be a key driver of apparel exports in the coming years, and we are glad that the scheme encourages companies to invest in fresh capacities across these segments. Additionally, it provides a level playing field to the industry vis-à-vis prominent global players, which in turn provides the country an opportunity to emerge as a global hub of textiles manufacturing.”

PLI scheme for Textiles is part of the overall announcement of PLI Schemes for 13 sectors made earlier during the Union Budget 2021-22, with an outlay of Rs. 1.97 lakh crore. With the announcement of PLI Schemes for 13 sectors, minimum production in India is expected to be around Rs. 37.5 lakh crore over 5 years and minimum expected employment over 5 years is nearly 1 crore.

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