The Government of India has officially extended the application window for the Production Linked Incentive (PLI) Scheme for Textiles until March 31, 2026. This strategic extension, announced by the Ministry of Textiles on January 2, 2026, aims to capitalize on heightened investor interest in high-growth segments such as Man-Made Fiber (MMF) apparel and technical textiles. By providing an additional quarter for fresh proposals, the government seeks to broaden the industrial base beyond traditional cotton, aligning with the ambitious national target of achieving US$ 100 billion in textile exports by 2030.
Facilitating inclusion and scale
Recent amendments have significantly lowered the barrier to entry, reducing minimum investment thresholds to Rs 50 crore for smaller units and Rs 150 crore for larger projects. These adjustments have already yielded substantial results; as of late 2025, 91 companies have been selected, committing an aggregate investment of Rs 7,731 crore. This fiscal push is designed to move Indian apparel manufacturing toward a vertically integrated model, enhancing cost-competitiveness against global rivals like Vietnam and Bangladesh. The Ministry reports, the scheme has already generated over 30,000 jobs, with turnover figures exceeding Rs 7,200 crore.
Strategic alignment with global standards
The extension arrives as the industry prepares for the National Textiles Ministers’ Conference later this month in Guwahati. Beyond domestic scaling, the PLI framework is being synchronized with global ESG (Environmental, Social, and Governance) mandates. By incentivizing technical textiles - used in healthcare, defense, and automotive sectors - India is diversifying its export basket to mitigate the risks associated with volatile cotton cycles. The revised norms ensure that even mid-sized manufacturers can now integrate into the global value chain, stated a Ministry official, highlighting that the move is essential for leveraging recent Free Trade Agreements (FTAs) with the UK and Australia.
Textile PLI initiative
The Production Linked Incentive (PLI) Scheme for Textiles focuses on promoting MMF apparel, MMF fabrics, and technical textiles. With a total outlay of Rs 10,683 crore, the initiative targets large-scale manufacturing and export growth. Launched in 2021, it aims to transform India into a global textile hub by 2030.
