The Union Cabinet Wednesday approved a Rs 10,683 crore production-linked incentive (PLI) scheme for the textiles sector with an aim to boost domestic manufacturing and exports. The incentives will be provided to the industry over a period of five years.
The scheme will help create direct employment for more than 7.5 lakh people and help pave the way for participation of women in large numbers.
The government expects that the scheme will result in fresh investment of above Rs 19,000 crore and additional production turnover of over Rs 3 lakh crore in five years.
The scheme has been approved for man-made fabrics. It is a part of the overall announcement of the scheme for 13 sectors made earlier during the Union Budget 2021-22, with an outlay of Rs 1.97 lakh crore.
Incentives worth Rs 10,683 crore will be provided over 5 years.
Commerce and Industry Minister Piyush Goyal said that fabric and garments made from these fibres would be a focus of the scheme so that world-class facilities are built in the country.
He also said that the government was also working on free trade agreements (FTAs) with the UK, the US, EU that will help the textile sector in getting a level playing field in these markets."So far, we have primarily focused on cotton textile. But 2/3 share of the international textile market is of man-made and technical textile. This PLI scheme has been approved so that India can also contribute to the production of man-made fibers.
We hope that this decision will produce some global champions. The factories based around aspirational districts or Tier-3 & Tier-4 cities will be given priority. It will especially benefit Gujarat, UP, Maharashtra, Tamil Nadu, Punjab, Andhra Pradesh, Telangana etc," said Goyal.
Reacting to the decision, Apparel Export Promotion Council (AEPC) Chairman A. Sakthivel said that the scheme will result in fresh investment of gigantic proportions, expand manufacturing capacities and enhance exports multifold.
"It will make India a key player in the global textile value chain with focus on high-value MMF products. Besides, it will promote industrial development in backward regions of the country," he said.
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