The Ministry of Textiles on Thursday announced significant amendments to the Production Linked Incentive (PLI) Scheme for textile products, aiming to address industry challenges and encourage fresh investments. The revisions, applicable to man-made fibre (MMF) apparel, fabrics, and technical textile products, include the expansion of products eligible for incentives, a halving of the minimum investment threshold, and a reduction in the incremental turnover criteria for availing incentives from 25% to 10%.
An official statement from the ministry said the amendments are designed to improve ease of doing business, promote fresh investments, accelerate growth, and underscore the government’s commitment to employment generation and establishing India as a global leader in textiles. The ministry also issued amended guidelines for the scheme.
Under the revised scheme, eight new HSN codes for MMF apparel and nine new HSN codes for MMF fabrics have been added to the list of eligible products. Unlike before, applicants can now establish project units within existing companies. Effective 1st August 2025, the minimum investment requirement for new applicants has been reduced from Rs. 300 crore (US $ 33.87 million) to Rs. 150 crore (US $ 16.93 million) for Part-1 category projects and from Rs. 100 crore (US $ 11.29 million) to Rs. 50 crore (US $ 5.64 million) for Part-2 category projects. From the current financial year, applicants will need to demonstrate a minimum 10% incremental turnover over the previous year to qualify for incentives from Year 2 onwards, down from the earlier 25% requirement.
The ministry noted that these revisions will lower entry barriers and financial thresholds, facilitating faster project execution. To encourage wider participation, the PLI scheme application portal will remain open until 31st December 2025.
The PLI Scheme for Textiles, notified on 24th September 2021, aims to promote the production of MMF apparel and fabrics and technical textile products, helping the industry achieve scale, competitiveness, and employment generation while supporting viable enterprise creation. So far, 74 companies with committed investments totalling Rs. 28,711 crore (US $ 3.24 billion) have been selected as beneficiaries under the scheme.
