Government Eases Textile PLI Scheme: 17 New Approvals Bring Major Reforms for 2025
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The Indian government has introduced sweeping amendments to its Production-Linked Incentive (PLI) Scheme for Textiles, approving 17 new changes aimed at amplifying investments and simplifying participation for industry players. The updates, revealed by the Ministry of Textiles, lower the barrier to entry by significantly reducing the required investment and easing turnover norms. This move underscores the government’s commitment to strengthening the country’s textiles sector amid growing global demand.
One of the most notable changes includes slashing the minimum investment requirement for new participants. From August 1, 2025, the investment threshold for Part-1 projects has been halved, from Rs.300 crore down to Rs.150 crore. Similarly, Part-2 projects will now require a minimum investment of just Rs.50 crore, instead of the earlier Rs.100 crore. This significant reduction is intended to foster wider participation, especially from medium-sized manufacturers.
In addition to reducing financial barriers, the turnover requirement for earning incentives has become more realistic. Starting this financial year, companies will only need to show a 10% year-on-year incremental turnover from the second year onward, a marked drop from the previous 25% requirement. This reduction makes it much easier for growing textile firms to compete for PLI benefits, especially during the early stages of scaling up.
Beyond financial relief, the scheme has expanded its product scope. The revisions include 8 new HSN codes for MMF (man-made fiber) apparel and 9 new codes for MMF fabrics, broadening the number of eligible products that can benefit from the scheme. Additionally, a key policy change now allows companies to set up project units within their existing companies, removing the earlier requirement to form entirely new entities to apply.
To encourage broader participation, the Textile Ministry has extended the application window for the revised PLI scheme until December 31, 2025. Since its inception in September 2021, with a total outlay of approximately Rs.10,683 crore, the PLI scheme has already secured committed investments worth Rs.28,711 crore from 74 companies.
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