Textile Ministry Revamps PLI Scheme to Boost MMF and Technical Textiles Growth
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The Ministry of Textiles has unveiled significant reforms to the Production Linked Incentive (PLI) Scheme for MMF Apparel, MMF Fabrics and Technical Textiles, marking a new era of opportunity for India’s fast-transforming textile ecosystem. The updated framework reflects a bold government strategy to drive investment, innovation, and employment while reinforcing India’s global leadership in man-made fibre and technical textile manufacturing.
At the heart of the revision lies a broader product scope, with the addition of 8 new HSN codes for MMF apparel and 9 for MMF fabrics. This expansion opens the doors to a wider range of products, encouraging more companies to participate and diversify their offerings. Another major reform allows project units to operate within existing company structures, removing the earlier requirement of forming new entities a move designed to simplify processes and accelerate project execution.
In a major relief to investors, the minimum investment thresholds have been slashed now set at Rs.150 crore (from Rs.300 crore) under Part-1 and Rs.50 crore (from Rs.100 crore) under Part-2. The incremental turnover requirement for availing incentives has also been reduced from 25% to just 10%, creating a more accessible and growth-friendly ecosystem.
These revised provisions, effective from August 1, 2025, come with an extended application window till December 31, 2025, offering ample time for industry players to align with the new framework.
With these strategic relaxations, the PLI Scheme is poised to ignite large-scale investment, stimulate employment, and drive sustainable innovation paving the way for India to emerge as a global powerhouse in high-value MMF and technical textiles.
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