The Ministry of Textiles has made major amendments in the Production Linked Incentive (PLI) Scheme for MMF Apparel, MMF Fabrics and product of Technical textiles. The application portal of the scheme is opened up to 31 December, 2025.
These amendments are to tackle industry issues, enhance ease of doing business, bring investments, and propel growth, which in turn would create jobs and position India in the international textile industry. The revised guidelines have been made public to help spur development of the sector.
The government has widened the list of eligible products by adding 8 new HSN codes under MMF Apparel and 9 new HSN codes under MMF Fabrics. This step of the government will provide more opportunities for businesses to avail of the benefits under the scheme.Â
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The revisions also bring significant relief to businesses looking to set up or expand their operations. The applicants can now establish project units within existing companies, eliminating the need to set up new entities.Â
Moreover, the minimum investment threshold has been reduced. It began from 1 August 2025, for all new applicants, the minimum investment reduced from Rs.300 crore to Rs 150 crore in Part-1 category and from Rs 100 crore to Rs 50 crore in Part-2 category of the Scheme.Â
Incentives made more accessible
To make incentives more accessible, the government has reduced the incremental turnover criteria from 25 per cent to 10 per cent. Starting FY 2025-26, applicants will need to demonstrate a minimum of 10 per cent incremental turnover over the previous year to qualify for incentives.Â
These revisions aim to solve problems in the industry, enhance ease of business, generate investments, and promote growth, eventually promoting employment and establishing India in the global market for textiles. The revised guidelines have been issued to enable the development of the sector.
Overall, the revisions to the PLI scheme are a welcome move for the textile industry, and businesses can now look forward to a more conducive environment for growth and development.
