PLI brings in Rs1,800 cr textile investments
The industry received Rs275 crore of investment in last 2 months alone; Govt targets $100-bn textiles exports by 2030
image for illustrative purpose
A Stitch In Time
- On Sept 24, 2021, govt notified the PLI scheme for a few textiles products
- Govt approved financial outlay of Rs10,683 cr over 5 yrs
- Centre also removed the import duty on cotton
- 7 PM MITRA textiles parks coming up with an outlay of Rs4,445 cr
New Delhi: The domestic textiles sector has attracted investments worth Rs1,800 crore approximately in response to the production-linked incentives (PLI) scheme. In the last two months alone, the sector received around Rs275 crore of investment, official sources told Bizz Buzz.
On September 24, 2021, the government notified the PLI scheme for a few textiles products, namely manmade fabric (MMF) apparels, MMF fabrics, and products of technical textiles. The objective was to enhance the country’s manufacturing capabilities and improve exports with an approved financial outlay of Rs10,683 crore over a five-year period. To further boost the growth of the sector, Centre also removed the import duty on cotton.
A consultative committee recently met and discussed the steps taken to promote exports and achieve the target of $100 billion by 2030, sources said.
The government has already approved the setting up of seven PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks to develop world-class infrastructure, including the plug-and-play facility with an outlay of Rs4,445 crore till 2027-28. The guidelines in respect of the scheme have been published and there have been multiple interactions with state governments for inviting proposals.
In response, 18 proposals from 13 States have been received. The government also notified uniform goods and services tax (GST) rate at 12 per cent on MMF fabrics, MMF yarns and apparel, which came into effect from January 1, 2022.
The Indian textile and apparel industry is expected to grow at 10 per cent CAGR from 2019-20 to reach $190 billion by 2025-26. India has a four per cent share of the global trade in textiles and apparel.
The technical textiles market for automotive textiles is projected to increase to $3.7 billion by 2027, from $2.4 billion in 2020. Similarly, the industrial textiles market is likely to increase at an eight per cent CAGR from $2 billion in 2020 to $3.3 billion in 2027. The overall Indian textiles market is expected to be worth more than $209 billion by 2029, according to a government website.
