On September 8, the Union Cabinet cleared a Production-Linked Incentive (PLI) scheme for the textile sector with a budget outlay of ₹10,683 crore, The scheme is aimed at providing a big fillip to the man-made fibres and technical textiles segments by promoting industries that invest in the production of 64 select products.
The product lines include 40 in man-made fibre apparel, 14 in man-made fibre fabrics, and 10 technical textile segments/products. The investment period is two years, and the incentive will be paid for five years after the first year of post-investment operation.
The scheme focuses on the man-made fibre segment to enable the Indian textile and clothing sector to regain its dominant status in the global textiles trade. Currently, Indian production and export of textile and clothing products are largely cotton-based. The new scheme is likely to help cover this shortfall so that India remains internationally competitive.
The government has said the scheme will help attract ₹19,000 crore of fresh investments and generate 7.5 lakh jobs. It is also expected that global brands will gradually start sourcing man-made fibre based apparel from India.
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