Govt amends PLI scheme for textile sector to attract more investments
This story was originally published at 17:23 IST on 9 October 2025
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MUMBAI – The government Thursday notified significant changes to the production-linked incentive scheme for the textile sector in order to encourage fresh investments into the sector. To address industry challenges and improve the ease of doing business, applicants can now establish project units within existing companies, an official release said.
The government has also reduced the minimum investment requirement for the Part-1 category to INR 1.5 billion from INR 3.0 billion, effective Aug. 1, 2025, for all new applicants. Similarly, the minimum investment requirement for the Part-2 category has been cut to INR 500 million from INR 1.0 billion, the release said.
Moreover, eight new products for man-made fibre apparel and 9 new products for man-made fibre fabrics have been included under the scheme. However, from 2025–26 (Apr-Mar), applicants will have to show a minimum 10% incremental turnover over the previous year to qualify for incentives, the release said.
To encourage wider participation from the industry, the Ministry of Textiles has opened the production-linked incentive scheme application portal until Dec. 31, 2025, the release said. With a budgetary outlay of INR 106.83 billion, incentives under the scheme are available for a period of five years — from FY26 to FY30 — based on the incremental turnover achieved during the period from FY25 to FY29. End
Reported by Sagar Sen
Edited by Saji George Titus
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