The Indian textile sector has attracted investments worth Rs1,800 crores (0.22 bn) in response to the production-linked incentive (PLI) scheme.
In the last two months alone, the sector received around Rs 275 crores of investments. On September 24, 2021, the PLI scheme was notified for a few textile products, namely manmade fabric and apparels and products of technical textiles.
The objective was to enhance the country’s manufacturing capabilities and improve exports with an approved financial outlay of Rs10,683 crores over a five-year period. To further boost the growth of the sector, the import duty on cotton was removed. Seven PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks will be developed with world-class infrastructure, including the plug-and-play facility, with an outlay of Rs4,445 crores by 2027-28. In response, proposals from 13 states have been received. The uniform goods and services tax at 12 per cent on manmade fabrics, yarns and apparel came into effect from January 1, 2022.
The Indian textile and apparel industry is expected to grow at ten per cent compound annual growth rate from 2019-20 to 2025-26.India has a four per cent share of the global trade in textiles and apparel.The overall Indian textile market is expected to be worth more than $209 billion by 2029.
