Industrial Subsidies India: New PLI Scheme for Textiles Updates 2024

The Ministry of Textiles is intensifying its focus on the Production Linked Incentive (PLI) Scheme to position India as a global leader in Man-Made Fibre (MMF) fabrics, garments, and Technical Textiles. With an approved outlay of ₹10,683 crore, the scheme aims to promote high-value production and attract significant investment into the sector. In 2024, the government has emphasized the importance of timely operationalization of projects by selected participants. This industrial subsidy is unique as it rewards incremental turnover rather than just capital expenditure. For SME exporters looking to scale, this provides a long-term roadmap for global competitiveness. The scheme is divided into two parts: Part 1 requires a minimum investment of ₹300 crore, while Part 2 is tailored for medium-sized enterprises with a minimum investment threshold of ₹100 crore. ## What this means for exporters - **Incentive Structure:** Participants can claim incentives ranging from 7% to 15% on the incremental turnover achieved over a five-year period. - **Global Standards:** Focus on Technical Textiles allows Indian manufacturers to enter high-margin markets like automotive, medical, and protective gear. - **Support Ecosystem:** The Ministry provides a dedicated portal for tracking quarterly progress and incentive claims. As per the Ministry of Textiles PLI guidelines and the latest press releases from the PIB, eligible units must ensure their manufacturing facilities are located in India and meet the value-addition criteria to remain compliant with the scheme's audit requirements.