Turnover limit in Textile PLI scheme reduced to ₹100 crore

A significant amendment has been made by the Central Government to the Production Linked Incentive (PLI) scheme related to textile manufacturing. The Ministry of Textiles has reduced the minimum turnover limit for the second category of the scheme from ₹200 crore to ₹100 crore. The primary objective of this decision is to increase the participation of Micro, Small and Medium Enterprises (MSMEs).

According to a report by Mint, the portal for applying for the scheme will remain open again from 1 November to 31 December. A fourth round of applications will be undertaken to promote local production of Man-Made Fibre (MMF) based garments, fabrics, and technical textiles. This move aims to increase investment and create employment.

The Ministry has extended the scheme period for companies approved under the fourth round until the financial year 2033-34. This long-term decision will provide more certainty to new participants to increase production capacity and invest. Companies participating in the first three rounds can also migrate to the fourth round, provided they have not previously claimed or received any incentive. However, they will have to withdraw their current applications.

Vinod Kumar, President of the India SME Forum, stated that by reducing the turnover criteria, it appears the government is aware of the realities of manufacturers. This move will encourage medium-sized units and SMEs to invest and expand capacity with confidence. Prabhu Dhamodharan, Convener of the Indian Taxpreneurs Federation, says that these changes have come at the right time.

According to data from the Directorate General of Commercial Intelligence and Statistics, India's textile and apparel exports, including handicrafts, were ₹3.20 trillion in financial year 25, which increased by 1.8% to ₹3.25 trillion in financial year 26. MMF textile exports increased by 3.3% to ₹46,254 crore, while ready-made garment exports were recorded at ₹1.39 trillion, an increase of 2.9%.