On Wednesday, Cabinet has approved the production-linked incentive (PLI) scheme worth Rs. 10,683 crore for the textiles sector aiming to boost domestic manufacturing and exports. The decision for this scheme was approved after a cabinet meeting that was chaired by Prime Minister Narendra Modi in Delhi.
Under the scheme, incentives worth ₹10,683 crores will be provided over a period of five years to textile industries for man-made fiber (MMF) apparel, MMF fabrics, and other technical textiles. The scheme is part of a wider announcement that was declared earlier, during the Union Budget 2021-22, which included 13 sectors and a budget estimated of ₹1.90L crore.
Speaking about the scheme at a press conference, Union Commerce and Industry Minister, Piyush Goyal told that “The government hopes this decision will ‘produce some global champions’ in MMF industries. The factories based around Tier-3 & Tier-4 are aspirational districts. They will be given priority. It will especially benefit UP, Maharashtra, Tamil Nadu, Punjab, Andhra Pradesh, Telangana, and Gujarat”.
Minister of State (MoS) for Textiles, Darshana Jardosh also said that “there is a possibility of about 7.5 lakh people getting employment under this scheme. She further told that the central government is “aiming for production of over ₹3.5 lakh crores and increased incentive target of 25%.