The first round of incentive payments under the production-linked incentive (PLI) system is scheduled to be distributed to about 12 textile producers.
“Around 40 companies have grounded investment. Our gestation period ended in March 2024,” a senior Government official stated, “We hope that 10–12 enterprises would receive incentive payouts (under PLI) this fiscal year,” they added.
With a budgetary cost of Rs. 10,683 crore, the initiative was introduced in 2021 to increase the domestic manufacturing of man-made fabric (MMF), clothing, and technological textiles. Private players, however, responded to the plan with a lacklustre tone.
The decision is noteworthy in light of the fact that earlier this year, a committee headed by the Cabinet secretary had also noted the “shortfall” in investment progress for 2023–24 in three of the 14 PLI sectors, including textiles.
The scheme’s parameters were initially made public by the Ministry of Textiles in December 2021. Nevertheless, the Government was presented with 64 applications with pledges that totalled under Rs. 6,000 crore. This was also a result of certain players informing the Government that, owing to a lack of experience, they were not interested in investing in the suggested textile categories.
Chemicals such as viscose, polyester, and acrylic are used in MMF. According to exporters, MMF makes up 5 per cent of India’s total garment exports. Conversely, technical textiles represent a cutting-edge industry that can be applied to the manufacturing of airbags, bulletproof vests, and personal protection equipment (PPE) kits, as well as to the aviation, defence, and infrastructure sectors.
The Cabinet has been asked to approve a second PLI scheme for the textile industry, with an emphasis on clothing, by the Ministry of Textiles. The scheme’s budget is expected to be Rs. 4,000 crore.
