Government Amends PLI Scheme for Textiles to Boost MMF Manufacturing
The Government of India is executing the Production Linked Incentive (PLI) Scheme through amendments notified on October 9, 2025. The following are the amendments:
- The minimum investment requirement has been reduced by 50%. Additionally, incremental turnover criteria have been lowered from 25% to 10%.
- The notified product basket has been expanded by adding 17 new products of MMF apparel and fabrics.
- Relaxation of the new company incorporation requirement under the Scheme.
The main aim of these changes is to encourage large participation and boost growth in the manufacturing of MMF Apparel, MMF Fabrics, and Technical Textiles in India.
The Government has reopened the application portal for the PLI Scheme for Textiles from August 1, 2025. However, the date has been extended. Companies can now apply until March 31, 2026. This extension has been given because many companies showed interest, and the Government wants to give more time, especially to mid-sized companies, to apply and benefit from the recent changes in the scheme.
The changes in the scheme aim to encourage more investment in the entire MMF value chain and improve production of MMF apparel, fabrics, and technical textiles. After these changes, 84 new proposals have been received. These proposals involve envisaging investments of Rs. 10,789 crore, a turnover of Rs. 44,081 crore, and the creation of around 86,740 new jobs.
The PLI Scheme is regularly monitored by the Ministry, DPIIT, and the Empowered Group of Secretaries (EGoS), which oversees all PLI schemes. A Project Management Agency (PMA) has also been appointed to verify progress at the ground level. There is a dedicated PLI portal to collect and track scheme data and performance metrics. The scheme’s progress is also reviewed under NITI Aayog’s Output-Outcome Monitoring Framework.
To promote balanced regional growth and inclusive development, 113 manufacturing units are being set up by 91 selected companies under the PLI scheme. These units are spread across 17 States and 1 Union Territory. They will help increase the production of MMF apparel, fabrics, and technical textiles in India.
In addition, the Government is running other schemes across the country to support infrastructure development, market expansion, exports, and skill development for the overall growth of the textile sector.
