The Ministry of Textiles has introduced key revisions to the Production Linked Incentive (PLI) Scheme for Man-Made Fibre (MMF) apparel, fabrics, and technical textiles to encourage greater participation and accelerate investments. The changes simplify eligibility requirements, expand product categories, and lower financial thresholds — making the scheme significantly more accessible to both new and existing players in the industry.
According to the ministry, eight new HSN codes for MMF apparel and nine for MMF fabrics have been added, expanding the list of eligible products. This broader inclusion aims to capture fast-growing segments in global demand, such as performance wear, functional fabrics, and industrial textiles. Importantly, applicants will no longer be required to establish new companies; they can now create project units under existing corporate entities, reducing compliance and setup burdens.
Lower entry barriers and flexible turnover criteria
To make the scheme more investment-friendly, the minimum investment threshold has been halved — from ₹300 crore to ₹150 crore under Part 1 and from ₹100 crore to ₹50 crore under Part 2. This move, effective from August 1, 2025, is designed to open the doors to mid-sized textile manufacturers and first-time investors, expanding the ecosystem of beneficiaries.
Additionally, the requirement for incremental turnover has been relaxed from 25% to just 10% year-on-year (from the second year onwards) for incentive eligibility. This reduction reflects the government’s recognition of industry challenges such as fluctuating input costs, global demand shifts, and post-pandemic recovery cycles.
The government has also extended the application deadline for the scheme until December 31, 2025, ensuring that companies have ample time to align expansion plans and apply for incentives.
Focus on ease of doing business and global competitiveness
The revised PLI framework is part of India’s broader strategy to position itself as a leading global manufacturing hub for synthetic and technical textiles. These revisions aim to make the industry more agile and investment-ready by removing procedural bottlenecks and improving ease of doing business.
The PLI scheme, launched in September 2021 with a total outlay of ₹10,683 crore, focuses on strengthening India’s competitiveness in MMF and technical textiles — sectors that account for a growing share of global apparel consumption. By supporting innovation and high-value manufacturing, the government seeks to capture new export opportunities in global markets where synthetic textiles are increasingly replacing natural fibres.
Industry outlook and next steps
Despite initial lukewarm participation from large manufacturers, the revised framework has reignited interest among investors. Industry bodies have welcomed the amendments, noting that they align with long-term goals of sustainability, value addition, and technology adoption.
The new structure will help create scale, boost employment, and attract global players to set up manufacturing bases in India. With greater product diversity and lower entry barriers, the textile industry expects the revised PLI scheme to contribute significantly to India’s target of achieving $350 billion in textile and apparel exports by 2030.