Introduction – PLI Scheme for Textiles

India’s textile sector has long been one of the country’s economic backbones, employing millions and contributing significantly to exports. To further strengthen this industry and make it globally competitive, the Government of India introduced the PLI Scheme for Textiles. The scheme offers structured incentives to boost production in synthetic fibers, technical textiles, and fabrics, ensuring that Indian manufacturers can achieve scale and competitiveness in the global market.

With the application portal reopened until August 31, 2025, this is the perfect opportunity for textile businesses to understand how the scheme works, assess their eligibility, and apply before the deadline.

Objectives of the PLI Scheme for Textiles

The scheme was launched with three primary objectives:

• Promote MMF apparel, fabrics, and technical textiles production in India.
• Enable global competitiveness by supporting enterprises that achieve scale and efficiency.
• Generate employment and attract investments through viable, sustainable businesses.

Operating between September 24, 2021, and March 31, 2030, the scheme provides incentives for five years (FY 2024–25 to FY 2028–29), making it a time-bound opportunity for the industry.

PLI Scheme Structure: Part 1 and Part 2

Scheme Part 1

• Minimum Investment: ₹300 crore (excluding land and administrative buildings)
• Minimum Turnover Target: ₹600 crore in the first performance year
• Eligible Applicants: Company/Firm/LLP/Trust creating a new manufacturing entity under the Companies Act, 2013

Scheme Part 2

• Minimum Investment: ₹100 crore (excluding land and admin buildings)
• Minimum Turnover Target: ₹200 crore in the first performance year
• Eligible Applicants: Same structure as Part 1, with smaller entry requirements

Why this matters: These thresholds ensure only serious investors participate, improving overall industry competitiveness. This forms the foundation of the PLI Scheme investment threshold textiles criteria.

Incentive Structure and Benefits

The incentive is linked to annual turnover growth, rewarding companies that achieve at least 25% incremental turnover YoY.

Key Conditions

• Cap on Turnover: A 10% cap applies on incremental turnover considered for incentives from Year 2 onwards.
• Year 1 Special Rule: Incentive calculation limited to turnover up to 2x investment + 10%.
• Maximum Duration: Incentives payable for five years only.

This is where the PLI Scheme textile incentive disbursement status becomes critical, as stakeholders must track how much has been disbursed each year against targets.

Eligibility under the PLI Scheme for Textiles

The PLI Scheme eligibility textiles criteria are designed to ensure compliance and transparency:

• Applicants must establish a separate manufacturing company under the Companies Act, 2013.
• Investments in plant, machinery, equipment, utilities, packaging, freight, and commissioning costs are considered eligible.
• R&D labs and testing facilities are allowed up to 10% of project cost.
• Exclusions: Land, office spaces, and administrative buildings are not covered.
• Products manufactured must carry a “Made in India” tag.

Govt reopens textiles PLI scheme portal to invite fresh applications.

The government has reopened the portal for inviting fresh applications under the performance-linked incentive (PLI) scheme for textiles sector, according to an official statement.

This framework encourages companies to focus investments where they truly matter—on production and innovation.

Impact on the Technical Textiles Industry

The PLI Scheme for Technical Textiles deserves special mention. Technical textiles (medical, industrial, defence, and infrastructure fabrics) are considered strategic industries for India’s economic growth.

The scheme provides direct support to manufacturers entering this niche, helping them:

• Expand domestic capacity.
• Reduce import dependency.
• Position India as a global hub for technical textile innovation.

Why Should Businesses Apply Now?

• Deadline Alert: The application portal will remain open till August 31, 2025.
• First-Mover Advantage: Early applicants secure better positioning in incentive allocation.
• Export Growth: PLI-backed production is aimed at enhancing India’s textile exports, opening doors to new markets.
• Employment Generation: Approved companies benefit from government support while creating jobs.
• Competitive Edge: The scheme offers a critical opportunity for companies to scale in a sector where global competition is intense.

Conclusion

The PLI Scheme for Textiles is not just an incentive program—it is a strategic initiative to transform India’s textile industry. From eligibility and investment thresholds to application processes and disbursement updates, every detail is designed to promote growth, efficiency, and sustainability in MMF and technical textiles.

If your company is in the textile sector, now is the time to act. With the application window open until August 31, 2025, businesses should seize this chance to expand capacity, secure incentives, and achieve global competitiveness.