The Union Cabinet, under the chairmanship of Prime Minister Narendra Modi, on Wednesday approved the Production Linked Incentive (PLI) scheme for the textile industry. Under the scheme, at least 7.5 lakh people will get employment, said Minister of State Anurag Thakur. “Looking at the economies of scale, this decision has been taken,” he said in a Cabinet briefing held on Wednesday.
Addressing the briefing, Minister of Textiles Piyush Goyal said incentives worth Rs 10,683 crore to be provided under the scheme over 5 years.
“We hope that this decision will produce some global champions. The factories based around aspirational districts or Tier-3 and Tier-4 cities will be given priority,” he said.
This scheme is expected to positively impact states like Gujarat, Uttar Pradesh, Maharashtra, Tamil Nadu, Punjab, Andhra Pradesh, Telangana, Odisha among others. The scheme will aim to boost domestic manufacturing and exports from the sector.
“So far, we have primarily focused on cotton textile. But 2/3 share of the international textile market is of man-made & technical textile. This PLI scheme has been approved so that India can also contribute to the production of man-made fibers,” said Goyal.