The Union Cabinet is set to approve on Wednesday (Sep 8) a production linked incentive (PLI) scheme for man-made fibre (MMF) segment and technical textiles with a financial outlay of Rs 10,683 crore over five years, PTI reported quoting officials aware of the development.
The scheme will be implemented by the Ministry of Textiles (MoT).
NDA government has already approved PLI schemes in 13 key sectors for enhancing India’s manufacturing capabilities and exports. PLI schemes in sectors like electronic manufacturing and pharmaceuticals are already operational.
The PLI scheme is expected to help attract additional investment by existing companies in the MMF and technical textile sectors and usher in new investments by Indian and multinational companies in this segment.
The scheme aims to enhance India’s manufacturing capabilities by increasing investment and production in the textile sector, especially in the MMF segment and technical textiles under greenfield and brownfield investments.
The government hopes that incentives offered under the PLI scheme will create select group of world-class global champion companies in MMF and technical textile segments, which have the potential to grow, both in size and scale, using cutting-edge technology and thereby penetrating global value chains.
India is currently a laggard in MMF textile trade due to high raw material cost, high tariff barriers and cheap imports from neighboring countries.
PLI scheme is expected to cover approximately 40 product categories under MMF and about 10 in the technical textile segment.
MMF is likely to cover product categories like jerseys, pullovers, trousers and shirts of man-made fibres. The technical textile category is set to cover products like diapers, adhesive dressings, bandages and safety airbags
The scheme is expected to provide incentives to both greenfield and brownfield investments and is expected to be in range of 3% to 11% of the incremental revenues’ year-on-year for five years.
Indian textiles and apparel industry is said to be one of the largest in the world, and is a key contributor to the country’s export basket, contributes to about 12% of export earnings.
Source : Swarajya
