India’s Textile PLI Returns: Fresh Registration Round Open till August 31, 2025

India has reopened the application portal for the Textile Production Linked Incentive (PLI) scheme, inviting fresh proposals until August 31, 2025. This is the second time the application window has been reopened since August 2023. At present, India has approved 74 applicants to receive textile PLI incentives over five years.

The Ministry of Textiles has reopened the application portal for the Production Linked Incentive (PLI) scheme, allowing companies to submit fresh proposals until August 31, 2025. The scheme covers key segments such as man-made fiber (MMF) apparel, MMF fabrics, and technical textiles.

In its announcement on August 8, 2025, the central government stated that the decision was taken in response to industry stakeholders’ requests, ensuring wider participation from companies interested in availing benefits under the scheme.

Industry welcomes reopening of textile PLI Scheme portal

Several industry leaders and textile associations have welcomed the reopening of the PLI Scheme application window, describing it as a positive move that allows textile companies, which missed earlier deadlines, another chance to participate. The latest notification clarifies that all previously notified terms and conditions under the scheme guidelines will continue to apply for fresh applications.

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Industry leaders noted that, with incentives structured to reward both growth and investment, the scheme presents Indian textile manufacturers with a significant opportunity to expand operations and enhance global competitiveness.

Since its launch in 2021, the scheme has attracted noteworth participation across key textile segments. According to data from the Ministry of Textiles, a total of 74 applicants have committed investments of nearly INR 287.11 billion (US$3.3 billion), which are expected to generate an estimated turnover of INR 2.16 trillion (US$24.9 billion) and create employment for over 259,000 people.

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

The PLI Scheme, first introduced in September 2021 with an approved outlay of INR 106.83 billion (US$1.22 billion), is designed to drive large-scale investments, encourage innovation and sustainability, and boost domestic manufacturing as well as exports. The application process was also reopened once earlier, in 2023.

Amendments to technical textiles list under PLI scheme

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.

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

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.

Kindly note the window for new application submission will close on August 31, 2025.

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.

Summary

India has reopened applications for the PLI scheme in MMF apparel, MMF fabrics, and technical textiles, with submissions open until August 31, 2025. Industry stakeholders have welcomed the move, noting its potential to boost investment and global competitiveness.

Since its launch in 2021, the scheme has attracted 74 applicants. Recent amendments introduced in February 2025 have further expanded the list of eligible technical textile products, providing greater clarity for applicants.

(US$1 = INR 86.95)

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