Textile ministry reopens PLI scheme, halves turnover threshold to ₹100 cr

New Delhi: The textiles ministry will reopen the application portal for its production-linked incentive (PLI) scheme for textiles from 1 November to 31 December, lowering the minimum turnover requirement for the scheme’s second category to ₹100 crore from ₹200 crore to widen participation of micro, small and medium enterprises (MSMEs).

The fourth round of applications aims to boost domestic manufacturing of man-made fibre (MMF) apparel, MMF fabrics and technical textiles, attract investments, generate 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 scheme’s tenure until the fiscal year 2033-34 for companies approved under the fourth round. The longer timeframe is intended to give new participants greater certainty in investing in and scaling up manufacturing capacity.

The government seeks to leverage its free trade agreements (FTAs) to expand exports of labour-intensive goods, including textiles and apparel, to a wider range of partner countries. Lowering the turnover threshold could bring more domestic manufacturers within the PLI scheme and help strengthen India's export competitiveness.

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

“The amendment’s success will depend on effective implementation, clear eligibility guidance, timely approvals, access to affordable finance and practical support for enterprises preparing their applications,” he added.

Prabhu Dhamodharan, convenor of the Indian Texpreneurs Federation (ITF) said that the move will encourage wider participation and long-term investments. “With India’s expanding FTA network opening 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 strives towards the $350 billion ambition for the textile and apparel sector by 2030, this measure comes as a huge confidence booster and provides a huge fillip to companies,” said Ashwin Chandran, chairman of the Confederation of Indian Textile Industry.

Textile exports

India’s textile and apparel exports, including handicrafts, rose 1.8% to ₹3.25 trillion in FY26 from ₹3.20 trillion in FY25, according to data from the Directorate General of Commercial Intelligence and Statistics. Exports of man-made fibre textiles increased 3.3% to ₹46,254 crore from ₹44,788 crore, while ready-made garment exports rose 2.9% to ₹1.39 trillion.

The scheme was originally designed to incentivize the production of specified man-made fibre apparel, fabrics and technical textile products, with the broader objective of improving the sector’s competitiveness and reducing dependence on imports.

Under the latest changes, companies already participating in the first three rounds can also migrate to the fourth round, provided they have neither claimed nor received any incentive under the scheme. Such companies will have to withdraw their existing applications, as applicable, before migrating, the ministry said.

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

About the Author

Dhirendra Kumar is a seasoned policy reporter with about 20 years of experience in deep, on-ground reporting across key economic and governance sectors. His work spans finance, public expenditure, disinvestment, public sector enterprises, textiles, trade, consumer affairs, and agriculture, with a strong focus on uncovering structural policy shifts and their real-world impact.<br><br>Kumar has been awarded the Chaudhary Charan Singh Award for Excellence in Journalism in Agricultural Research and Development, recognising his contribution to reporting on critical issues in the farm sector. He has also been a recipient of a fellowship in international trade from the National Press Foundation, which has further strengthened his coverage of global trade dynamics and their implications for India.<br><br>Kumar is known for breaking complex policy developments into clear, accessible stories. His reporting focuses on uncovering under-reported trends, explaining policy shifts, and helping readers stay informed about developments that shape India’s economic landscape.