The government is implementing the Production Linked
Incentive (PLI) Scheme for Textiles to encourage wider
participation, especially from micro, small and medium
enterprises (MSMEs), Minister of State for Textiles Pabitra
Margherita said while replying to a question in the Lok
Sabha.
To broaden participation, the government reopened the
application portal on August 1, 2025 and extended the
deadline to March 31, 2026, citing strong industry
response and interest from mid-sized firms. The scheme
was revised through a notification issued on October 9,
2025.
Under the amendments, the minimum investment
requirement has been reduced by 50 per cent, while the
incremental turnover threshold has been lowered from
25 per cent to 10 per cent.
The notified product basket has also been expanded
with the inclusion of 17 additional MMF apparel and
fabric products. Further, the requirement to set up a new
company to avail benefits under the scheme has been
relaxed.
Following the amendments, the scheme has
received 84 new proposals so far, with proposed
investments of Rs 10,789 crore. These projects are
expected to generate a turnover of Rs 44,081 crore
and create around 86,740 new jobs. The revisions are aimed at stimulating investment across
the entire MMF value chain and increasing domestic
production of MMF apparel, fabrics and technical textile
products. Implementation of the scheme is being
monitored by the Ministry of Textiles, the Department for
Promotion of Industry and Internal Trade (DPIIT) and the
Empowered Group of Secretaries.
A Project Management Agency has been engaged for
on-ground verification, supported by a dedicated PLI
portal that serves as a central data repository. The
scheme is also linked to NITI Aayog’s Output-Outcome
Monitoring Framework for periodic assessment.
Under the PLI scheme, 91 companies have been
selected to set up 113 manufacturing units across 17
states and one Union Territory.
The minister added that the government is also running
several Pan-India initiatives on infrastructure, market
development, export promotion and skill development
to support the textile sector’s overall growth.