New 10,000 Crore Scheme For Textiles, 7.5 Lakh New Jobs: Centre
PLI scheme for textiles sector: The payout will be spread for five years
The government approved the production-linked incentive (PLI) scheme worth Rs 10,683 crore for the textiles sector on Wednesday, September 8, to boost domestic manufacturing and exports. The scheme will help in creating direct additional employment of more than 7.5 lakh people and several lakhs more for supporting activities. The payout will be spread over a period of five years, as part of the incentives approved for the textiles sector.
The decision was taken by the Cabinet chaired by Prime Minister Narendra Modi. The PLI scheme is approved for textiles, MMF (man-made fibre) apparel, MMF fabrics, and 10 segments or products of technical textiles. The scheme will result in the production of high-value MMF fabric, garments, and technical textiles in the country.
The government estimates that over five years, the PLI Scheme for textiles will result in a fresh investment of more than Rs.19,000 crore, along with a cumulative turnover of over Rs.3 lakh crore.
The production-linked incentive scheme for textiles is part of the overall announcement of the scheme for 13 sectors made earlier during Budget 2021-22, with an outlay of Rs 1.97 lakh crore.
With the PLI schemes for these 13 sectors, the minimum production in the country is expected to be around Rs. 37.5 lakh crore over a period of five years.
The scheme will prioritise investment in aspirational districts, tier 3, tier 4 towns, and rural areas. Predominantly, the textiles industry employs women, so the PLI scheme will encourage women and increase their participation in the formal economy. It will impact specially states such as Gujarat, Maharashtra, Uttar Pradesh, Tamilnadu, Punjab, Odisha, among few others, according to the government.