Union Cabinet approves Rs. 10,683 crore PLI plan for textile industry

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admin November 6, 2021
Updated 2021/11/06 at 2:04 PM

A Rs. 10,683 crore Production Linked Incentive (PLI) plan for the textile industry was recently approved by the Union Cabinet. The goal is to assist India in regaining its historical dominance in the global textiles sector.

The incentives will promote investment in new capabilities in MMF clothing, MMF fabrics, and 10 technical textile categories or products. The plan is expected to generate over Rs. 19,000 crore in investment, resulting in the creation of an extra 7.5 lakh direct employment. There will be two investment tiers, each with its own set of incentives. To be eligible for the PLI, a person or company must invest a minimum of Rs. 300 crore in the plant, machinery, and civil works to produce the selected items. Individuals or businesses in the second group must invest a minimum of Rs. 100 crore to be eligible for the rewards. Investment in aspirational districts, tier-three and tier-four municipalities, and rural regions would be prioritised. Gujarat, Uttar Pradesh, Maharashtra, Tamil Nadu, Punjab, Andhra Pradesh, Telangana, and Odisha are anticipated to gain from the initiative. Applicants would have a two-year investment period, with the ‘performance’ year being 2024-2025. The five-year incentive period would begin in 2025-2026 and finish in 2026-2027.

The textile and apparel industry in India employs 45 million people and is a labor-intensive business. In terms of employment, it is just second to agriculture. It provides 2.3 percent to Indian GDP, 7% to Industrial Output, 12% to India’s export profits, and employs more than 21% of the country’s workforce. India is the world’s sixth-biggest producer of technical textiles, with a 6% global share, and the world’s largest producer of cotton and jute. Technical textiles are practical materials used in sectors such as cars, civil engineering, and construction. India is also the world’s second-largest producer of silk, accounting for 95 percent of the world’s handwoven fabric. Cotton currently accounts for two-thirds of India’s textile exports, whereas MMF-based and technological textiles account for 66-70 percent of global textile and apparel commerce.

 

Source: The Hindu

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