The new production linked incentive of government will reduce the dependence on imports and boost investment across the country, especially in smaller towns.
The Union Cabinet, headed by Prime Minister Narendra Modi, on Wednesday approved the PLI scheme for notified products of man-made fibre apparel and 10 segments of technical textiles with a financial outlay of ₹10,683 crore over five years.
Manoj Patodia, Chairman, The Cotton Textiles Export Promotion Council (Texprocil) said the scheme will reduce the textile sector’s import dependence and will make the industry Atmanirbhar.
The PLI scheme will encourage setting up of new domestic textiles companies or expand existing manufacturing companies, which in turn will generate additional employment especially for women, he said.
Under the scheme, priority will be given for investment in tier III and IV towns and rural areas, said Patodia.
Boost to exports
The scheme will create a strong ecosystem for the development of textiles sector in different States such as Uttar Pradesh, Maharashtra, Tamil Nadu , Punjab, Andhra Pradesh , Telangana and Odisha which will ensure development of the textile sector throughout the country.
The PLI scheme will boost the overall textile and clothing exports and also give a fillip to domestic manufacturing, he added
The incentives under the scheme are based on the fulfilment of prescribed minimum investment and turnover limits. The broad objectives of the scheme is to help Indian textile companies to become global champions and to regain India’s dominance in global textiles trade .
The scheme covers only those manufacturing companies that are registered in India.