Govt revises PLI scheme for MMF, technical textiles to encourage fresh investments
Early this month, the government extended the last date for receiving applications under the PLI scheme for textiles till December 31 2025
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The Textiles Ministry has announced significant revisions in the Production Linked Incentive (PLI) Scheme for manmade fibre (MMF) apparel & fabrics, and products of technical textiles to make the Scheme more attractive for investors.
These include expanding the list of eligible products that can benefit from the Scheme in the given categories, doing away with the requirement of setting up new companies, reducing by half the minimum investment threshold and also lowering the incremental turnover criteria, per a statement issued by the Textiles Ministry on Thursday.
“These significant amendments are designed to address industry challenges, enhance ease of doing business, encourage fresh investments in the sector, and accelerate growth, underscoring the government’s focus on fostering employment and driving India’s leadership in the global textile market,” the statement noted.
Elaborating on the decisions, the statement highlighted that eight new HSN codes (numerical classification of products for taxation and foreign trade purposes) for MMF apparel and nine new HSN codes for MMF fabrics had been included in the PLI scheme.
Applicants also do not mandatorily have to set up new companies to be eligible for the scheme and can establish project units within the existing companies.
From August 1, 2025, the minimum investment requirement for all new applicants has been halved to ₹150 crore from ₹300 crore in part-1 category and to ₹50 crore from ₹100 crore in part-2 category of the scheme, the release explained.
Significantly, from the current fiscal, applicants will have to demonstrate a minimum of 10 per cent incremental turnover over the previous year (down from 25 per cent) to qualify for incentives (from second year onwards).
“The above revisions will significantly reduce entry barriers and financial thresholds, enabling faster execution,” the release stated.
Early this month, the government extended the last date for receiving applications under the PLI scheme for textiles and announced that the application portal would remain open till December 31 2025.
The PLI scheme for textiles was notified on September 24 2021 with a corpus of ₹10,683 crore to promote the MMF and technical textiles sector in the country and enable it to achieve size and scale to become competitive.
Despite luke-warm response from the industry to the scheme, the government did not give in to the demand of extending it to garments made of all fabrics, including cotton, as it argued that the main objective was to promote MMF and technical textiles which had immense scope of growth.
Published on October 9, 2025
