India’s Production-Linked Incentive (PLI) scheme for textiles is beginning to reduce the country’s dependence on imports of niche textile products while driving growth in exports of value-added and technical textile categories, according to government data.
Introduced in September 2021, the Rs. 10,683 crore (US $1.13 billion) scheme aims to strengthen domestic manufacturing of man-made fibre (MMF) apparel, MMF fabrics and technical textiles by encouraging fresh investments and expanding production capacity.
Data released by the government shows a significant decline in imports across several specialised textile categories during the post-PLI period of 2022-25 compared with 2019-21. Imports of synthetic raincoats and overcoats fell to zero during 2022-25, compared with imports worth US $2.9 million in the three years preceding the scheme.
Similarly, imports of men’s outerwear declined by 99% to US $0.1 million from US $23.2 million, while imports of non-woven man-made fibre products fell 77% to US $10.6 million from US $46.9 million. Imports of dyed knit fabrics dropped to US $8.8 million from US $26.5 million, while imports of women’s synthetic jackets decreased to US $2.9 million from US $8.9 million.
The data also indicates strong growth in exports of several high-value textile products. Exports of clinical diapers increased by 193% to US $7.7 million during the post-PLI period, up from US $2.6 million before the scheme was introduced.
Exports of narrow woven MMF fabrics rose 157% to US $31.5 million from US $12.2 million, while exports of men’s synthetic briefs increased more than two-and-a-half times to US $66.4 million from US $26.4 million.
The government said exports of premium and value-added textile products have expanded substantially since the implementation of the scheme, reflecting increasing domestic manufacturing capabilities and greater competitiveness in international markets.
Under the five-year programme, the government has approved 170 applicants across three rounds. Gujarat leads with 46 approved applicants, followed by Maharashtra with 27 and Madhya Pradesh with 23.
The approved companies have collectively proposed investments worth approximately Rs. 41,500 crore (US $4.39 billion), more than double the original Cabinet projection of Rs. 19,000 crore (US $2.01 billion). The higher-than-anticipated investment commitments are expected to support capacity expansion, job creation and the development of a stronger domestic textile manufacturing ecosystem.
Bharat Tex Special Report 2026 
