India’s Textile PLI Scheme: Extended Window Offers Fresh Entry Opportunity

On September 1, 2025, India extended the application window for the Textile PLI Scheme by one month, following its August 8 reopening for fresh proposals. This marks the second extension since the scheme’s August 2023 relaunch. Businesses in the textile sector should act quickly to leverage the extended PLI window, as it offers a timely opportunity to secure incentives for scaling production and strengthening export competitiveness.

Application window extended to September 30, 2025

India’s Ministry of Textiles has extended the application window for the Production Linked Incentive (PLI) Scheme for Textiles. By August 31, 2025, the central government had received 22 new proposals under the scheme from the man-made fiber (MMF) apparel, MMF fabrics, and technical textiles segments.

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Industry leaders and textile associations have welcomed the reopening of the PLI Scheme application window, calling it a positive step that gives companies another chance to apply. The notification confirms that all previously issued terms and conditions remain unchanged.

They emphasized that, with incentives tied to both growth and investment, the scheme offers Indian textile manufacturers a strong opportunity to scale operations and boost global competitiveness.

PLI Scheme for Textiles: Applicants and target segments

As of September 1, 2025, 74 companies have received approval under the textile PLI Scheme, with committed investments of INR 287.11 billion (US$3.26 billion). These investments are expected are expected to generate an estimated turnover of INR 2.16 trillion (US$24.9 billion), create employment for over 259,000 people, and boost India’s manufacturing capacity in the MMF and technical textiles value chains.

Source: PLI, Ministry of Textile, Government of India.

Background and launch

The PLI Scheme for Textiles was first introduced on September 24, 2021, with an approved outlay of INR 106.83 billion (US$1.22 billion). Designed to boost domestic manufacturing, innovation, and exports, the scheme targets key textile segments, namely, man-made fiber (MMF) apparel, MMF fabrics, and technical textiles. Incentives are linked to both investment and incremental turnover, aimed at strengthening India’s global competitiveness.

Earlier revisions and reopening

The application process was reopened once before in 2023, in response to industry requests for wider participation.

On February 24, 2025, India introduced amendments to the list of technical textile products covered under the PLI Scheme. This update follows earlier notifications issued on September 24, 2021, June 9, 2023, and October 9, 2024, which introduced and amended Annexure III of the scheme.

To ensure clarity and ease of implementation, India has released a comprehensive list of technical textile products eligible under the PLI scheme.

List of technical textile products eligible under the PLI Scheme for Textiles

Source: Extraordinary gazette notification, Ministry of Textile, GoI.

PLI application and incentive disbursement process

Eligible manufacturers can apply for benefits under the scheme by following these steps:

1. Register on the PLI portal: Visit the official portal and create an account using basic company details. Click here to register: pli.texmin.gov.in/user_registration
2. Complete the application form: Provide information such as company name, address, proposed production targets, and investment plans.
3. Upload supporting documents: Submit required documents, including the company’s registration certificate, permanent account number (PAN), and goods and services tax (GST) details.
4. Submit the application: Once the form and documents are uploaded, the application can be formally submitted through the portal.
5. Approval and disbursement: The Project Management Agency (PMA) will review the application. If approved, incentives will be released after the applicant completes all necessary pre-disbursal requirements.

Textile PLI Scheme: Segments and incentives

The textile PLI Scheme is divided into two parts, based on the scale of investment and turnover requirements.

Part 1 applies to companies or firms willing to invest at least INR 3 billion (US$34.5 million) in plant, machinery, equipment, and civil works, excluding land and administrative buildings.

• To qualify for incentives, the company must achieve a minimum turnover of INR 6 billion (US$69 million) from notified products in the MMF and technical textiles segments. Incentives begin from FY 2024–25 (Year 1), following a two-year gestation period.
• In Year 1, companies will receive a 15 percent incentive, which continues for up to five years, provided there is at least 25 percent incremental turnover each year. The incentive percentage, however, reduces by 1 percent annually, falling to 11 percent by Year 5. 

Part 2 targets firms or companies making a lower investment threshold of INR 1 billion (US$11.5 million) in plant, machinery, equipment, and civil works, again excluding land and administrative buildings.

• To receive incentives, eligible companies must achieve a minimum turnover of INR 2 billion (US$23 million) from notified MMF and technical textile products. The incentive framework mirrors Part 1, with benefits starting in FY 2024–25 (Year 1) after the two-year gestation.
• In Year 1, an 11 percent incentive is granted, continuing up to five years subject to achieving 25 percent incremental turnover each year. The incentive rate decreases annually by 1 percent, reaching 7 percent in Year 5.

Under Part 1 and 2, only sales transacted through normal banking channels will be eligible.

(This article was originally published on August 19, 2025. It was last updated September 2, 2025.)

(US$1 = INR 86.95)

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