Union Cabinet approves production linked incentive scheme worth Rs. 10,683 crores for textile sector
Under PLI Scheme for the textile sector, a package of Rs. 10,683 crores will be allocated for the 10 different segments of the textiles sector over the period of 5 years.
The Union Cabinet chaired by PM Modi on September 8, 2021, gave its approval to the production linked incentive (PIL) scheme for the textile sector.
The Union Minister of Commerce and Industry Piyush Goyal informed that a package of Rs. 10,683 crores will be allocated for the 10 different segments of the textiles sector as part of the newly approved scheme over 5 years.
The Chairman of the Apparel Export Promotion Council (AEPC), Dr. A Sakthivel welcomed the Union Cabinet’s decision of approving the PLI scheme for the textile sector and said that it will be a game-changer for the textile industry in India and will also transform the country’s growth story.
Union Cabinet has approved Production Linked Incentive (PLI) scheme for Textiles. Incentives worth Rs 10,683 crores will be provided over 5 years: Union Minister Anurag Thakur pic.twitter.com/eGJq7ebz1y— ANI (@ANI) September 8, 2021
PIL Scheme for textile sector: Objective
• The Production Linked Scheme for the textile sector aims at boosting the manufacturing activities and the jobs, apart from scaling up the exports.
• The PLI scheme for the textile sector will focus on technical textiles and man-made fibers so that the country can contribute to its production.
• The scheme is part of the announcement of Public Linked Incentive schemes for 13 sectors that were made during Budget 2021-22, with an outlay of Rs. 1.97 lakh crore.
• Under the scheme, the factories based around the aspirational districts or the Tier-3 and Tier-4 cities will be given the top priority under the scheme.
• The scheme will help in producing some global champions. It will particularly benefit Uttar Pradesh, Gujarat, Tamil Nadu, Maharashtra, Andhra Pradesh, Punjab, and Telangana.
• As per the Union Minister, primarily, the focus will be on the cotton textile. However, the two-thirds share of the international textile market is of man-made and technical textile, through this scheme, India will be able to contribute to the production of man-made fibers.
• India has also been planning to sign free-trade agreements in textile sectors with the countries such as the UK.
So far, we have primarily focused on cotton textile. But 2/3 share of the international textile market is of man-made & technical textile. This PLI scheme has been approved so that India can also contribute to the production of man-made fibers: Union Minister Piyush Goyal pic.twitter.com/eYzuBBr6Ea— ANI (@ANI) September 8, 2021
Why PLI Scheme for textile sector is significant?
• The Production Linked Scheme (PLI) for the textile sector that has been approved by the Union Cabinet will result in a fresh investment of the gigantic propositions, will enhance exports multifold, and will also expand the manufacturing capabilities.
• The scheme will make India a key player in the global textile value chain with a focus on MMF products of high value. Apart from this, the scheme for the textile sector will also promote industrial development in the backward regions of the country.
What is expected from PLI scheme for textile sector?
It has been estimated that over the period of 5 years, the scheme for textiles will lead to a fresh investment of more than Rs. 19,000 crores, with a cumulative turnover of Rs. 3 lakh crores.
The scheme is expected to create additional opportunities for employment of more than 7.5 lakh jobs and several lakhs more for assistance work.
The textile industry in India predominantly employs women, therefore, it will empower them and will increase their participation in the formal economy.