Centre gives nod to ₹10,683 crore-worth PLI scheme for textile sector
Under the scheme, incentives worth ₹10,683 crore will be provided over a period of five years. This outlay has been approved for textiles for man-made fibre (MMF) apparel, MMF fabrics and ten segments or products of technical textiles.
The Union cabinet on Wednesday approved the production-linked incentive (PLI) scheme for the textile sector with the aim to boost domestic manufacturing and exports, Union minister Anurag Thakur said. The decision to pass the scheme was made in a meeting that was chaired by Prime Minister Narendra Modi in Delhi.
Under the scheme, incentives worth ₹10,683 crore will be provided over a period of five years, news agency PTI reported. The outlay has been given a nod for textiles for man-made fibre (MMF) apparel, MMF fabrics and ten segments or products of technical textiles.
Notably, the PLI scheme for textiles is part of a wider announcement made earlier during the Union Budget 2021-22, which includes a total of 13 sectors, with an outlay of ₹1.97 lakh crore.
According to official estimates, minimum production in India from the PLI schemes is likely to surpass US$ 500 billion in five years, Livemint reported.
Speaking about the scheme, Union commerce and industry minister, Piyush Goyal told ANI that the government hopes this decision will “produce some global champions.” “The factories based around aspirational districts or Tier-3 & Tier-4 cities will be given priority. It will especially benefit Gujarat, UP, Maharashtra, Tamil Nadu, Punjab, Andhra Pradesh, Telangana, etc,” he added.
Minister of state (MoS), textiles, Darshana Jardosh said that there is a possibility of about 7.5 lakh people getting employment from this scheme. She further told ANI that the central government is “aiming for production of over ₹3.5 lakh crores; incentive target of 25% after first 2 years.”
The idea of the schemes is to better competitiveness of domestic manufacturing activities and to pave the way for global champions. Furthermore, the schemes were specifically designed to curtail cheaper imports, boost domestic manufacturing in strategic sectors and cut down import expenses as well, according to the Livemint report.