The textile sector is awaiting the formal announcement of a revised Production Linked Incentive (PLI) scheme, expected to place greater emphasis on man-made fibre (MMF) textiles.
Union Minister for Textiles Giriraj Singh indicated forthcoming reforms in a recent post on X, noting that the PLI scheme had been made more dynamic, flexible, and industry-friendly. He said the changes would support ease of doing business while driving growth in MMF and technical textiles.
According to details shared, the revised scheme will incorporate eight new HSN codes for MMF apparel and nine for MMF fabrics. Units can now be established within existing companies, while the investment thresholds have been revised to Rs. 150 crore (US $ 16.89 million) under part 1A and Rs. 50 crore (US $ 5.63 million) under part 2A. The incremental turnover required for incentives has been set at 10%.
The Confederation of Indian Textile Industry (CITI) welcomed the revised scheme, calling it an important step towards wider participation, particularly for smaller entities in the ecosystem. CITI Chairman Ashwin Chandran said the revisions would inject significant momentum into the Indian textile and apparel sector, strengthening its global competitiveness.
He added that the expanded coverage, through the addition of new HSN codes for MMF apparel and fabrics, would provide strong impetus to the segment in India, encouraging the production of higher-value MMF products. Chandran also highlighted the new flexibility allowing units to be set up within existing companies, describing it as a move that would substantially improve ease of doing business compared with earlier rules, which required separate units.
Globally, the textile ecosystem is dominated by man-made fibre, while in India cotton continues to hold the largest share. Industry leaders expressed optimism that the revised PLI scheme would help correct this imbalance and boost India’s standing in the MMF segment.
