Context:
The Government of India has relaxed eligibility norms under the Production Linked Incentive (PLI) Scheme for Textiles, aiming to boost investment and production in the sector amid slower-than-expected participation by firms.
Key Highlights / Details
- Revised Investment Thresholds:
- For large firms, the minimum investment requirement has been reduced from ₹300 crore to ₹150 crore.
- For smaller firms, the threshold is now ₹50 crore, down from ₹100 crore.
- Operational Flexibility:
- Companies can now set up new project units within existing premises — earlier, setting up a separate new unit was mandatory.
- Objective:
- To increase participation of firms, expand production capacity, and accelerate disbursal of PLI incentives.
- Strengthens India’s position in man-made fibre (MMF) and technical textiles segments — key focus areas of the scheme.
Relevant Prelims Points
- PLI Scheme for Textiles:
- Launched in September 2021 with an outlay of ₹10,683 crore.
- Covers MMF apparel, MMF fabrics, and technical textiles.
- Aims to boost domestic manufacturing and exports, and attract global textile investment to India.
- Implementing Ministry: Ministry of Textiles.
- Duration: FY 2022–23 to FY 2030–31.
Relevant Mains Points
- Economic Policy Impact:
- The relaxation enhances ease of doing business, particularly for SMEs and mid-sized manufacturers.
- May lead to higher job creation, technology adoption, and export diversification.
- Industrial Policy Dimension:
- Reflects the government’s responsive approach to address industry feedback and low utilization of PLI benefits.
- Global Competitiveness:
- Textile PLI complements “Make in India” and “Atmanirbhar Bharat” goals by promoting value-added exports.