Government looks to finalise second PLI scheme for garments and textiles in early 2023

By

Isabelle Crossley

Published
Dec 15, 2022

The Union Government is expected to finalise a second edition of its Production Linked Incentive scheme for the home textiles, garments, and made-ups industries in early 2023. The scheme will focus on uplifting small and medium businesses. 

“We encouraged capital and machinery in the first edition of PLI his time, we are looking at small and medium entities,” an anonymous official told ET Bureau on December 14. One of the reasons the PLI 2.0 is on the table is that the Ministry of Textiles has Rs 4,000 crore in so far unused budget. 
 
Discussions are still continuing to finalise the workings of the PLI 2.0 with details such as investment thresholds. Due to the increased focus on small businesses, the government plans to lower the thresholds compared to the previous PLI scheme which focused on technical textile and man-made fibre businesses and set the investment threshold at Rs 100 crore and Rs 300 crore respectively. Under the new iteration of the scheme, the thresholds could be set at between Rs 15 crore and Rs 45 crore. 

Although the finer details of the PLI 2.0 have not been finalised, textile accessories such as zippers and buttons could be covered as well as home textiles such as bedspreads. The PLI scheme is designed to boost production to increase India’s manufacturing output.