Union cabinet approves Rs 10,683 crore PLI Scheme for textiles sector: Check benefits and other details

The Union Cabinet led by Prime Minister Narendra Modi on Wednesday approved a Rs 10,600 crore Production Linked Incentive (PLI) Scheme for specific segments in the textiles sector. The scheme is part of the overall announcement of the PLI scheme for 13 sectors announced during the Budget 2021 with an outlay of Rs 1.97 crore. 

Union Minister Anurag Thakur announced that incentives worth Rs 10,683 crore will be provided over 5 years under the PLI scheme to the textiles sector. 

“We hope that this decision will produce some global champions. The factories based around aspirational districts or Tier-3 and Tier-4 cities will be given priority. It will especially benefit Gujarat, UP, Maharashtra, Tamil Nadu, Punjab, Andhra Pradesh, Telangana, etc,” Union Minister Piyush Goyal said while addressing the cabinet briefing with Thakur.

He also said that rural areas will also be given priority due to which industries will be incentivized to move to the backward areas.

 “We hope that this decision will produce some global champions," Goyal said, adding that this will also pave the way for women's participation in large numbers.

“So far, we have primarily focused on cotton textile. But 2/3 share of the international textile market is of man-made & technical textile. This PLI scheme has been approved so that India can also contribute to the production of man-made fibers,” the Textiles Minister said.

The scheme is expected to boost manufacturing activities, provide employment and help scale up exports.