In a move set to energize India’s textile manufacturing landscape, the Ministry of Textiles has announced significant amendments to the Production Linked Incentive (PLI) Scheme for MMF (Man-Made Fibre) apparel, MMF fabrics, and technical textiles.
These revisions are designed to address long-standing industry challenges, enhance ease of doing business, and attract new investments — all while driving India closer to its vision of becoming a global leader in textile production and innovation. The updated guidelines mark another step in the government’s commitment to fostering employment, increasing exports, and supporting sustainable growth across the textile value chain.
Key Amendments to the PLI Scheme
The new framework introduces a series of reforms that make the scheme more accessible and industry-friendly:
- Broader Product Coverage: The government has expanded the list of eligible products, adding 8 new HSN codes for MMF apparel and 9 new HSN codes for MMF fabrics, allowing a wider range of products to qualify for incentives.
- Flexibility for Existing Companies: In a major relaxation, applicants are now allowed to set up project units within existing companies, eliminating the earlier requirement to create new entities.
- Lower Investment Thresholds: Effective 1st August 2025, the minimum investment requirement has been significantly reduced — from ₹300 crore to ₹150 crore under Part 1, and from ₹100 crore to ₹50 crore under Part 2 of the scheme. This move will make participation feasible for a larger pool of investors, including small and mid-sized players.
- Simplified Turnover Criteria: The incremental turnover requirement for incentive eligibility has been relaxed from 25% to 10% starting FY 2025–26. From the second year onward, applicants need to show only a 10% increase in annual turnover over the previous year to qualify for benefits.
These policy shifts will lower entry barriers, reduce financial risk, and accelerate project implementation, helping manufacturers quickly scale up and modernize operations.
Application Window Extended
To ensure greater participation, the application portal for the PLI Scheme will remain open until 31st December 2025. The Ministry has urged textile manufacturers — both new entrants and existing players — to leverage the extended timeline and revised framework to invest, expand, and innovate.
A Strategic Push for Global Competitiveness
The amendments reflect the government’s proactive approach to making India a preferred global hub for MMF and technical textiles. By incentivizing efficiency, scale, and product diversification, the revised PLI Scheme is expected to generate employment, attract domestic and foreign investments, and enhance India’s export competitiveness in value-added textile segments.
As the global textile market shifts towards synthetic and technical fabrics, these reforms signal a timely opportunity for Indian manufacturers to lead from the front — embracing technology, sustainability, and innovation as the cornerstones of growth.
