The government has likely halted plans to expand the Production-Linked Incentive (PLI) scheme for textiles to include garments. In 2024, Textiles Minister Giriraj Singh mentioned the potential extension to boost manufacturing and exports. However, a government official stated that the focus is now on improving the current scheme’s utilization.
Approved in 2021 with a budget of ₹10,683 crore, the PLI scheme for textiles aims to boost man-made fibre apparel and fabrics production. So far, 74 applicants have received approval, with incentives totaling ₹7,086 crore. Despite this, the scheme has been slower than other sectors covered under the initiative.
There is no consensus on expanding the scheme to garments. The government believes constant tweaks could lead to numerous similar requests from other sectors. Instead, the focus remains on better utilization of the current scheme.
In 2023-24, the PLI schemes spurred investments worth ₹1.46 lakh crore, production or sales of ₹12.50 lakh crore, exports worth ₹4 lakh crore, and employment for 9.5 lakh individuals. While sectors like large-scale electronics have seen success, textiles and steel have lagged.
The government remains committed to the PLI scheme as a crucial driver of manufacturing growth but currently prioritizes the effective use of existing plans.
