Stakeholders in the textile and garments sector are advocating for the expansion of the Production Linked Incentive (PLI) scheme to the entire sector in the upcoming Union Budget 2025. Currently, limited to synthetic fiber, the scheme is likely to incentivise investments, foster joint ventures between foreign companies and local production units and enhance competition while creating job opportunities. In recent weeks, numerous proposals were submitted to the government for consideration.

Highlighting the challenges faced by exporters in securing bank loans to fulfill order requirements, Rajiv Bansal, National Vice-President, Indian Industries Association (IIA), emphasised on the need to reinstate the recently concluded interest subvention scheme, which provides relief on loan interest rates until September 30. Bansal called for an extension of the scheme for a longer duration and reduction in interest rate to 5 per cent.

He also urged for a revival of the Technology Upgradation Fund Scheme, which was instrumental in subsidising new equipment purchases in earlier administrations but has since been discontinued. Reinstating this program could significantly aid technological advancements in the sector, he said.

Lalit Thukral, Chairman, Noida Apparel Export Cluster, hailed the government’s support for local businesses through incentives tied to increased production and sales. The government is actively reviewing proposals to enhance the sector’s growth and global competitiveness, he noted.

The implementation of these measures could provide a much-needed boost to the garments and textile industry, enabling it to thrive and contribute significantly to the nation’s economy, he stated.