The Centre will be reportedly putting the PLI scheme on hold and will not be adding any more sectors in the wake of slowing disbursements, people aware of the matter have said.
The Government had previously contemplated broadening the PLI framework to encompass more industries; however, the suspension of future additions will enable it to stabilise and optimise the current system.
According to reports, the Textile Ministry has halted its plans to add other product lines, including as T-shirts and innerwear, under the program.
The Government disbursed over US $ 1.18 billion under various PLI programs in FY ’24, but this year’s disbursements are less than US $ 118 million, according to data from the Commerce Ministry’s Department for the Promotion of Industry and Internal Trade. One of the sectors with the largest claims is the textile industry.
Many businesses have reportedly failed to fulfil the strict production quotas required to qualify for the incentives, which is why disbursments have stalled.
In FY ’25, textile enterprises that produce clothing from man-made fibres (MMF) are required to invest a minimum of US $ 35.6 million and have sales of at least US $ 71.2 million. For this category, the incentive range is 11–15 per cent.
With 7–11 per cent incentives, the minimum investment for technological textiles is US $ 11.86 million, and sales are expected to reach US $ 23.73 million. Before manufacturing starts in FY ’25, this plan allows for a two-year investment gestation period. To keep getting incentives, businesses need to increase their turnover by 25 per cent from the year before.
