Textile Ministry Reopens PLI Scheme, Halves Turnover Limit to ₹100 Cr

New Delhi: The Ministry of Textiles will reopen the application portal for its Production Linked Incentives (PLI) scheme for textiles from November 1 to December 31, reducing the minimum turnover requirement for the second category of the scheme to ₹100 million from ₹200 crore to expand the participation of Micro, Small and Medium Enterprises (MSMEs).

The fourth round of requests aims to promote domestic production of man-made fiber (MMF) garments, MMF fabrics and technical textiles, attract investment, create employment and strengthen India’s position in global textile value chains, the ministry said in a statement on Wednesday.

The ministry has also extended the validity of the scheme till the fiscal year 2033-34 for the companies approved in the fourth round. The longer time frame is intended to provide new entrants with greater certainty when investing in production capacities and expanding them.

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The government is seeking to use its free trade agreements (FTAs) to expand exports of labour-intensive goods, including textiles and clothing, to a wider range of partner countries. Lowering the turnover threshold could bring more domestic producers under the PLI scheme and help strengthen India’s export competitiveness.

“Reducing the turnover criteria for the textile PLI scheme demonstrates the government’s responsiveness to the ground realities of growing manufacturers. This move will encourage mid-sized units and proactive SMEs to invest with confidence, expand their capacity and contribute significantly to the country’s manufacturing growth story,” said Vinod Kumar, President, India SME Forum.

“The success of the amendment will depend on effective implementation, clear guidelines for eligibility, timely approval, access to available finance and practical support for businesses to prepare their applications,” he added.

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Prabhu Dhamodharan, convener of the Indian Texpreneurs Federation (ITF), said the move will encourage wider participation and long-term investment. “With India’s expanding FTA network opening up new global markets, these changes come at an opportune time,” he said.

“At a time when the industry continues to be buffeted by global headwinds, even as it vigorously pursues its ambition of $350 billion for the textile and apparel sector by 2030, this measure comes as a huge confidence booster and provides a huge boost to companies,” said Ashwin Chandran, Chairman, Confederation of Indian Textile Industry.

Textile export

India’s textile and apparel exports, including handicrafts, rose 1.8%. ₹3.25 trillion in FY26 from ₹3.20 trillion in FY25, according to data from the Directorate General of Business Intelligence and Statistics. Exports of synthetic fiber textiles increased by 3.3% to ₹46,254 million crowns ₹44,788 crore, while garment exports grew by 2.9%. ₹1.39 trillion.

The scheme was originally designed to encourage the production of specific man-made garments, fabrics and technical textile products with the broader objective of improving the sector’s competitiveness and reducing import dependency.

According to the latest changes, companies that have already participated in the first three rounds can also proceed to the fourth round if they have not applied for or received any incentive under the scheme. These companies will have to withdraw their existing applications before migrating, if applicable, the ministry said.

The application portal will remain open till December 31 and eligible companies can apply through the ministry’s online portal at pli.texmin.gov.in, the statement said.