Production Linked Incentive (PLI) Scheme
The Government has issued operational guidelines for the Production Linked Incentive (PLI) Scheme for Textiles.
The Production Linked Incentive (PLI) scheme will incentivize the production of ten segments or products of high value man-made fiber (MMF) apparel, MMF textiles and technical textiles in the country over the next five years.
Operating Guidelines:
- PLI refers to the exemption given to the producers. This discount is calculated as a fixed percentage of the manufacturer’s sales (this may include reference sales, total sales, or incremental sales).
- It has been made mandatory for the participating companies to achieve both a certain total sales and a minimum investment to receive the incentive benefits.
- Companies need to invest between Rs 100-300 crore to manufacture approved products to get the incentives.
- Companies have been given a maturity period of two years from FY 2023 to FY 2024 to conduct activities eligible for incentives.
Indian Textile Industry:
Key Facts:
- India’s textile industry employs about 4.5 crore workers.
- This industry contributes 73 % in production (by value), 2% in Gross Domestic Product (GDP) and 12% in export earnings. The contribution of the Indian textile industry to the global trade in textiles and apparel was 5% in the year 2018-19.
- India is the largest producer of cotton and jute in the world, the second largest producer of silk and the sixth largest producer of technical textiles.
- India is the second largest producer of MMF fiber after China.
Other Government Initiatives to Promote Textile Industry:
- 100% Foreign Direct Investment (FDI) has been allowed in this sector under the automatic route.
- Revised Technology Upgradation Fund Scheme (A-TUFS) has been launched.
- National Technical Textiles Mission has been started.
- PM Mitra (Meg Integrated Textile Region and Apparel) parks are being set up.
Source – The Hindu
