The cabinet on Wednesday approved the production-linked incentive (PLI) scheme worth Rs 10,683 crore for textiles sector with an aim to boost domestic manufacturing and exports, Union Minister Anurag Thakur said.
The decision was taken in a meeting which was chaired by Prime Minister Narendra Modi.
PLI scheme for textiles is part of the overall announcement of the scheme for 13 sectors made earlier during the Union Budget 2021-22, with an outlay of Rs 1.97 lakh crore.
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
Under the scheme incentives worth Rs 10,683 crore will be provided over five years.
According to the government, the move will especially positively impact states like Gujarat, Uttar Pradesh, Maharashtra, Tamil Nadu, Punjab, Andhra Pradesh, Telangana, Odisha among others.
The government expects investments of more than Rs 19,000 crore into the sector during the five-year period.
It is also expected to bring about additional production turnover of over Rs 3 lakh crore during the period and create employment opportunities of over 7.5 lakh people directly and several lakhs more for supporting activities, as per the government.
The government will give higher priority for investment in the aspirational districts and tier-3 cities.
Industry participants have lauded the decision of the government. Apparel Export Promotion Council (AEPC) Chairman A. Sakthivel said that it will be a game changer for the Indian textile industry and will transform India's growth story.
Sakthivel said that the scheme will result in fresh investment of gigantic proportions, expand manufacturing capacities and enhance exports multifold.
"It will make India a key player in the global textile value chain with focus on high value MMF products. Besides, it will promote industrial development in backward regions of the country," he added.
The focus of the PLI scheme would be for the development of man-made fibre and technical fibre segments that are in high demand in advanced economies where India already has a big presence with its technical products.
Commerce and Industry Minister Piyush Goyal said that fabric and garments made from these fibres would be a focus of the scheme so that world class facilities are built in the country.
He also said that the government was also working on free trade agreements (FTAs) with advanced economies such as the UK, the US, EU that will help the country both ways to get requisition imports as well boost exports. FTA would also help the textile sector, the minister said, in getting a level playing field that faced unequal duties in some of these markets.
Sanjay Aggarwal, President, PHD Chamber of Commerce and Industry, said, "The PLI Scheme for Textiles for MMF Apparel, MMF Fabrics, and 10 segments/products of Technical Textiles, is a great step forward to achieve the goal of ‘Aatmanirbhar Bharat.' PLI for Textiles, in conjunction with RoSCTL, RoDTEP, and other government facilitated initiatives in the industry, such as providing raw materials at competitive prices, skill development, and so on, will usher in a new era in textile manufacturing."
Dipali Goenka, Jt MD & CEO, Welspun India, said, "As one of the leading India-based global textile manufacturers, Welspun welcomes the government’s decision to extend PLI scheme to MMF apparels, fabrics, and technical textiles. We are confident that incentivizing indigenous manufacturers to increase their production capabilities will have a ripple effect that will benefit all stakeholders across the value chain, by driving greater domestic consumption and international trade as well as boost employment generation."
(With inputs from agencies)
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