The government has approved 52 new applications under Round III of the Production Linked Incentive (PLI) Scheme for Textiles, at a time when domestic demand remains strong and free trade agreements, such as the one with the UK, are nearing implementation, further supporting the sector’s growth prospects.
Out of the new approvals, five are for man-made fibre (MMF) clothing, 19 are for MMF fabrics, 18 focus on technical textiles, and the remaining ten cover more than one segment.
So far, 148 companies have been selected under this scheme. Together, they are expected to invest Rs. 6,708 crore (US $718 million) and generate a turnover of Rs. 21,186 crore (US $2.27 billion).
These companies are spread across many states. These include Andhra Pradesh, Telangana, Gujarat, Tamil Nadu, Karnataka, Madhya Pradesh, Rajasthan, Punjab, Himachal Pradesh, Maharashtra, West Bengal, Haryana, and Uttar Pradesh. Some Union Territories like Daman and Diu, and Dadra and Nagar Haveli are also included.
In December 2025, the government made some changes to the scheme. The minimum investment needed was reduced. For Part 1, it was cut from Rs. 300 crore (US $32.13 million) to Rs. 150 crore (US $16.06 million). For Part 2, it was reduced from Rs. 100 crore (US $10.71 million) to Rs. 50 crore (US $5.35 million). The minimum incremental turnover criterion was also reduced from 25% to 10%, and the product basket was expanded to include additional MMF apparel, fabrics, and technical textiles. Also, the requirement to set up a new company to avail of the scheme’s benefits has been removed.
The PLI Scheme for Textiles was originally approved in September 2021, with a total budgetary outlay of Rs 10,683 crore (US $1.14 billion) for a period of five years. It focuses on high-value segments that will support long-term growth and exports.
Right now, India has only a 9.2% share in the global man-made fibre market. This is much lower than countries like China, Vietnam, and Taiwan. India’s share in the global technical textiles market is also low, at around 5% to 6%.
