Centre approves ₹10,683 crore PLI scheme for Textile Sector

Central government has approved the production-linked incentive (PLI) scheme of worth Rs 10,683 crore for the textiles sector on September 8, 2021.

Key Points

  • This PLI scheme was approved in order to boost domestic manufacturing and exports.
  • Scheme will help in creating direct additional employment of more than 7.5 lakh people and several supporting activities.
  • As a part of incentives approved for textiles sector, the payout will be spread over a period of five years.
  • PLI scheme was approved for textiles, MMF (man-made fibre) fabrics, MMF apparel and 10 segments or products of technical textiles.

Significance of the scheme

  • This scheme will help in production of high-value MMF fabric, garments, and technical textiles in India.
  • It will also result in a fresh investment of more than Rs.19,000 crore, and a cumulative turnover of over Rs.3 lakh crore, over a period of five years.
  • Scheme prioritise investment in aspirational districts, tier 3, tier 4 towns as well as rural areas.
  • As textiles industry employs women, scheme will encourage women and increase their participation in formal economy.

Which states will benefit more?

This PLI scheme will impact and benefit special states including Uttar Pradesh, Gujarat, Maharashtra, Tamil Nadu, Punjab, Odisha.


This production-linked incentive scheme for textiles is a part of overall scheme that was announced for 13 sectors during Budget 2021-22, with an outlay of Rs 1.97 lakh crore. With the PLI schemes for 13 sectors, minimum production in India is expected to be around Rs 37.5 lakh crore in a period of five years.


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