After extending dates for production-linked incentive (PLI) scheme for textiles, the Government is planning to make it more attractive and might offer greater flexibility under it.
The scheme was launched two years ago to boost the domestic manufacturing of man-made fabric garments and technical textiles, with a budgetary outlay of Rs. 10,683 crore.
It is being said that the response to the scheme from the textile industry is not as per the expected lines of the Ministry of Textiles (MoT).
As per a report from Business Standard, the leading English daily, the MoT has sought the Cabinet’s approval to add more product lines under the scheme.
“A cabinet note has been circulated to get approval for bringing more flexibility in the scheme by extending the HSN (harmonised system) codes of MMF to cover as many categories as possible,” the report quoted an official.
The reason for the decision to offer flexibility in the HSN codes was that textiles is a dynamic industry with regular changing demand for fabrics and changes in fashion. Hence, it isn’t prudent to limit incentives to a select few textile categories.
The guidelines of the scheme were first released by the Government in December 2021 and received 64 applications with commitments worth approximately Rs. 6,000 crore. But a year later, seven players backed out because they were not keen on investing in either MMF or technical textiles due to adverse export markets and lack of expertise.
Bharat Tex Special Report 2026 
