PLI scheme will help textile cos overcome disadvantages, says textiles ministry

Upendra Prasad Singh, secretary, textiles ministry on Wednesday said Production Linked Incentive (PLI) scheme will help textile companies to overcome disadvantages with competitors like China or Vietnam or Bangladesh.

The union cabinet has approved a PLI scheme worth Rs 10,683 crore for the textiles sector with an aim to boost domestic manufacturing and exports. The decision was taken in a meeting that was chaired by Prime Minister Narendra Modi in New Delhi.

"The cabinet has approved the PLI scheme for textiles for MMF (man-made fibre) apparel, MMF fabrics and ten segments/ products of technical textiles with a budgetary outlay of Rs 10,683 crore," textiles minister Piyush Goyal told reporters.

Textile stocks surge as government approves PLI scheme for sector

Singh said, "Textile is a very important segment of the Indian economy. It contributes about 2.3 percent to the GDP, about 11 to 12 percent of total merchandise exports. It is the second-largest employer after agriculture.  Directly and indirectly, about 10.50 crore  people are engaged in textiles."

He said, "If there are a large number of applicants as this scheme is a fund limited scheme, then we are going to have certain criteria."

On exports, he said, "This scheme is primarily to improve production. But then if we produce more, whatever we consume in the country either way of higher need or import substitution, the balance will basically get exported. Export in India have been growing fairly well, not only compared to the last year, but even pre-COVID period, actually."