India reopens PLI scheme applications for textiles after policy revisions

The Ministry of Textiles is preparing to open a fresh application window for its flagship Production Linked Incentive (PLI) scheme for textiles. The decision follows a strong surge in industry interest after the government introduced relaxed eligibility criteria and lower investment thresholds designed to make the program more accessible to mid-sized enterprises.

Under the revised framework, the government reduced the minimum investment required to participate in the scheme. For Part-1 projects, the minimum investment threshold was lowered from Rs. 300 crore to Rs. 150 crore, while the requirement for Part-2 projects was halved from Rs. 100 crore to Rs. 50 crore. Additionally, the operational guidelines were modified to allow companies to establish new manufacturing units under their existing corporate entities rather than mandating the formation of separate special-purpose vehicles. The mandatory year-on-year incremental growth requirement to claim incentives was also eased from 25 percent to 10 percent.

Officials indicate that the response to the modified guidelines has been particularly robust, prompting the ministry to consider a broad reopening of the portal. The previous selection rounds under the Rs. 10,683-crore scheme have already seen tens of proposals approved across the focus segments—namely man-made fibre (MMF) apparel, MMF fabrics, and technical textiles. Together, the selected applicants represent thousands of crores in committed investments aimed at building capacity in high-value textile manufacturing.

The initiative aims to address the structural imbalances in India's textile sector, which historically leaned heavily toward cotton processing. By offering performance-based incentives over a five-year period, the government seeks to bolster domestic capability in synthetic fabrics and technical applications—segments that dominate the global trade landscape.

Industry stakeholders have welcomed the prospect of an open application window, noting that the lower capital requirements allow a broader set of regional manufacturers to participate. The Ministry of Textiles is expected to issue a formal notification detailing the exact timeline and submission guidelines for the upcoming window once finalized.