Govt To Revamp Textile Sector Incentive Scheme Amid Export Decline

(MENAFN- KNN India) New Delhi, Jun 21 (KNN)
The government is preparing to modify its production-linked incentive (PLI) scheme for the textile sector, following a tepid response from industry players.

The revised scheme is expected to include additional product categories such as t-shirts and innerwear, reported Mint.

Introduced in September 2021 with a budget allocation of Rs 10,683 crore, the PLI scheme aimed to stimulate domestic manufacturing of man-made fabric (MMF) garments and technical textiles.

MMF includes synthetic materials like viscose, polyester, and acrylic, while technical textiles are utilised in specialised products such as personal protective equipment, airbags, and bullet-proof vests.

The proposed modifications come in response to a decline in India's textile exports, which decreased by 11.69 per cent from USD 16.24 billion in 2018 to USD 14.34 billion in 2023.

Industry stakeholders have suggested that lowering the minimum entry level could make the scheme more accessible to smaller manufacturers.

Under consideration are plans to extend the facility setup period from two years to over three years.

The current scheme's structure, with its substantial capital requirements, has been criticised as favoring large textile mills over apparel factories.

To date, the government has approved 64 applicants under the scheme, with proposed investments totaling Rs 19,798 crore.

These projects are projected to generate a turnover of Rs 1.94 crore and create 245,362 jobs. The first set of approved applicants is scheduled to begin receiving incentives from 2025-26.

The textile industry awaits further details on the proposed changes, as the government seeks to bolster this crucial sector of the Indian economy.

(KNN Bureau)


KNN India

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