Government Extends PLI Scheme for Textiles Application Window Amidst Overwhelming Industry Response

PLI Scheme for Textiles: Government extends the last date for submitting new applications up to 31st December 2025

#PLITextiles #MakeInIndia #ManufacturingGrowth #IndianEconomy #TextileIndustry #GovernmentSchemes #InvestmentOpportunity #EconomicGrowth #MMF

New Delhi: The Government of India has announced an extension of the application window for the Production Linked Incentive (PLI) Scheme for Textiles, giving the industry additional time to participate in one of the most significant policy initiatives aimed at strengthening India’s textile manufacturing ecosystem. The Ministry of Textiles confirmed on Monday that the window will now remain open until 30th September 2025, following strong interest from investors and stakeholders.


Strong Industry Response

The extension comes on the back of an encouraging response to the earlier call for applications in August 2025, when the ministry received 22 new proposals from companies operating in the man-made fibre (MMF) apparel, MMF fabrics, and technical textiles sectors.

Officials highlighted that the growing interest reflects not only the confidence of investors in India’s textile sector, but also the tangible opportunities that the PLI scheme has created in terms of market expansion, innovation, and employment generation.

A senior government official noted, “The appetite for investment in the textile sector has grown substantially. This extension will allow more prospective investors to take advantage of the PLI scheme, which is already driving transformation across the MMF and technical textiles value chain.”


PLI Scheme Background

The PLI Scheme for Textiles was officially notified on September 24, 2021, and further clarified through guidelines issued on December 28, 2021. It is part of the broader national PLI framework covering multiple sectors, designed to incentivize manufacturing, attract large-scale investments, and enhance India’s global competitiveness.

For textiles, the scheme focuses primarily on the MMF segment and technical textiles, which are areas where India has significant growth potential but historically lagged behind global competitors.


Extension Details

The Ministry has confirmed that the terms and conditions of the scheme remain unchanged. The online application portal will continue to accept submissions until 30th September 2025, after which no new applications will be entertained.

The reopening of the window has been described as a response to both the overwhelming demand from industry players and the government’s larger vision to position India as a global hub for textiles and apparel manufacturing.


Investments and Beneficiaries So Far

The scheme has already attracted significant investments. According to official data, 74 participant companies have been selected as beneficiaries so far, committing an investment of ₹28,711 crore.

These investments are expected to drive manufacturing across the entire MMF value chain, which includes raw materials, fabrics, apparel, and advanced technical textiles. The outcome is projected to create large-scale employment, enhance exports, and boost India’s share in the global textile market.

Industry analysts note that with global demand for technical textiles rising in sectors like healthcare, infrastructure, defense, and sports, India has a timely opportunity to leverage the PLI scheme for both domestic and export-led growth.


Why the Scheme Matters

  1. Boost to Manufacturing – The scheme provides targeted incentives, encouraging companies to scale up production capacity within India.

  2. Employment Generation – The textile sector is one of India’s largest employers, and the PLI scheme is expected to create lakhs of direct and indirect jobs.

  3. Export Competitiveness – By focusing on MMF and technical textiles, India can address trade deficits in these categories and enhance its export profile.

  4. Attracting Global Investors – The PLI framework makes India a more attractive destination for global players looking to diversify their supply chains away from over-concentrated geographies.


Industry Outlook

Industry bodies have welcomed the extension. Many believe that the extra time will allow smaller and mid-sized companies to prepare robust proposals and participate meaningfully in the scheme.

Textile manufacturers are also optimistic that the PLI scheme, combined with complementary policies like infrastructure development, skilling initiatives, and trade facilitation, will create a comprehensive ecosystem for growth.

Rajiv Bansal, a textile industry veteran, commented, “The PLI scheme has already started transforming the way investors look at the textile sector in India. Extending the application window will broaden participation and ensure that more players can contribute to India’s journey as a global textile hub.”


Future Prospects

Looking ahead, the government expects that the cumulative investments under the scheme will not only raise India’s manufacturing capacity but also spur innovation in sustainable textiles, eco-friendly fabrics, and advanced materials.

With global demand shifting towards value-added and specialized textile products, India’s focus on MMF and technical textiles positions it well to capture emerging opportunities. The PLI scheme extension is, therefore, being seen as a strategic move to accelerate momentum and deepen industry participation.


Conclusion

The extension of the application window for the PLI Scheme for Textiles till 30th September 2025 underscores the government’s commitment to fostering investment, innovation, and employment in the sector. With 74 companies already on board with investments worth ₹28,711 crore and more applications expected in the coming weeks, the scheme is set to play a defining role in reshaping India’s textile industry.

By targeting high-growth segments and encouraging large-scale domestic manufacturing, the scheme not only strengthens the textile value chain but also aligns with India’s broader vision of becoming a global leader in manufacturing and exports.


#PLITextiles #MakeInIndia #ManufacturingGrowth #IndianEconomy #TextileIndustry #GovernmentSchemes #InvestmentOpportunity #EconomicGrowth #MMF #TechnicalTextiles #AtmanirbharBharat

By MFNews