Government Boosts Textile Sector with PLI Scheme and Cotton Mission

The Indian government is advancing the textile sector through the PLI Scheme, allocating 22% of the 2025-26 budget to enhance MMF apparel production. A five-year Cotton Mission aims to boost cotton productivity. The initiative also emphasizes export competitiveness with schemes like RoSCTL and RoDTEP.

The Indian government has initiated the nationwide rollout of the Production Linked Incentive (PLI) Scheme for Textiles, according to Pabitra Margherita, the Minister of State for Textile. The PLI scheme aims to bolster the production of MMF Apparel, MMF fabrics, and Technical Textiles to achieve optimal size, scale, and competitiveness.

According to the Ministry's Budget Estimate for 2025-26, around 22% of the budget is earmarked for the PLI Scheme for Textiles. Among the 74 applicants selected, 24 are MSMEs. The projected turnover for the scheme period, including exports, is Rs. 2,16,760 crore, the Minister noted.

Additionally, the government has implemented the Rebate of State and Central Taxes and Levies (RoSCTL) scheme, along with the Remissions of Duties and Taxes on Exported Products (RoDTEP), to boost competitiveness. Financial support is extended to Export Promotion Councils for trade events.

The 2025-26 budget has allocated Rs 5,272 crore to the Ministry of Textiles, a 19% increase over the previous year's budget. A five-year Cotton Mission has been announced to improve cotton productivity, especially for extra-long staple varieties, with scientific support for farmers. New shuttle-less looms have been added to encourage production of technical textile products at competitive rates.

(With inputs from agencies.)