Why Modi Govt gave Rs 1,06,83,00,00,000 to Textile Sector ?

PLI Scheme for Textile | Textile Mega Park | Production linked Incentive Scheme

Indian government has announced PLI Scheme (Production Linked Incentive) to promote the manufacturing in textile sectors and reduce dependency on Imports for technical textiles. PLI scheme aims to boost the production of Technical textile products and regain India’s position as one of the largest sources of apparels and textiles globally.

PLI scheme is aimed to promote technical textiles and manmade fibres production. Technical textile covers many important products used in our day to day life such as: Masks, gloves, seat covers, sports clothes etc.
Technical textiles are functional fabrics that have applications across various industries including automobiles, civil engineering, and construction, agriculture, healthcare, industrial safety, personal protection etc.
Indian govt wants to increase productions in field of Technical textiles to fulfill the local demands. It will also support the industrial growth as well as create employment in textile sector. PLI scheme is expected to create 7.5 lacs job opportunities in next 5 years. PLI scheme will also help the traditional cotton textile industry to switch to new technical products of textiles. Recently we have seen some big textile groups have announced their plans for plant expansion and new plant set up for technical textiles.

The new PLI scheme proposes to incentivize eligible manufacturers by paying between 3 percent and 11 percent incentive on incremental production. It has two categories of investments above Rs 100 crore and Rs 300 crore. Companies which will set up factories in aspirational districts, Tier-III and Tier-IV will be given priority while allocating incentives. The number of jobs created will also be taken into consideration. By this, PLI scheme will promote the rational distribution of industries in less industrial zones.

What do you think about this PLI schem ? Please write your comments below.