India's Textile PLI Scheme has seen a significant boost with the approval of 22 new applicants in its third round, committing a total investment of ₹12,822 crore. This move is expected to generate a projected turnover of ₹58,294.18 crore and create 36,217 employment opportunities across the textile value chain, according to the Textile Ministry.
Expansion of Textile Manufacturing
The newly approved companies under the PLI scheme are from the man-made fibre (MMF) apparel, MMF fabrics, and technical textile segments. This expansion is part of the government's strategy to position India as a global hub for value-added textile manufacturing. The scheme aims to support the development of a robust and globally competitive textile ecosystem aligned with the vision of Aatmanirbhar Bharat.
Policy Amendments and Industry Response
In October 2025, the government introduced major amendments to the scheme to enhance industry participation. These amendments included expanding the list of eligible products, removing the requirement for setting up new companies, reducing the minimum investment threshold by half, and lowering the incremental turnover criteria. These changes have encouraged more companies to participate, reflecting the industry's positive response to the government's efforts.
Comparative Data
| Round | Number of Applicants | Investment (₹ crore) | Projected Turnover (₹ crore) |
|---|---|---|---|
| 1 & 2 | 74 | - | - |
| 3 | 22 | 2,339.14 | 15,561.34 |
| Total | 96 | 12,822.67 | 58,294.18 |
Future Outlook
The PLI scheme for textiles, notified on September 24, 2021, with an approved outlay of ₹10,683 crore, aims to promote the production of MMF apparel and fabrics, and products of technical textiles. The initiative is expected to enable the textile industry to achieve the necessary size and scale, become globally competitive, and create substantial employment opportunities.
The production changes are set to take effect as the approved companies begin their operations, contributing to the overall growth and sustainability of India's textile sector.
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