The Union Cabinet headed by Prime Minister Narendra Modi on Wednesday approved the production linked incentive (PLI) scheme for the textile sector.
A package of Rs 10,683 crore will be allocated for 10 different segments of the textiles sector as part of the scheme over five years, Minister of Commerce and Industry Piyush Goyal informed while addressing the media personnel.
Goyal stated that the textile sector is the largest employer in the country.
The PLI scheme is aimed at boosting manufacturing activities and jobs, besides scaling up exports. The PLI scheme for the textile sector will focus on man-made fiber and technical textiles.
"We hope that this decision will produce some global champions. The factories based around aspirational districts or Tier-3 and Tier-4 cities will be given priority. It will especially benefit Gujarat, Uttar Pradesh, Maharashtra, Tamil Nadu, Punjab, Andhra Pradesh, and Telangana," the Union Minister said.
"So far, we have primarily focused on cotton textile. But the two-thirds share of the international textile market is of man-made and technical textile. This PLI scheme has been approved so that India can also contribute to the production of man-made fibers," Goyal further said.
Goyal added that India would sign free-trade agreements (FTAs) in textile sectors with countries like the United Kingdom.
Apparel Export Promotion Council (AEPC) Chairman Dr A Sakthivel has welcomed the Union Cabinet's approval of the PLI scheme and said that it will be a game-changer for the Indian textile industry and will transform India's growth story.
The Chairman said that the scheme will result in a fresh investment of gigantic proportions, expand manufacturing capacities and enhance exports multifold.
"It will make India a key player in the global textile value chain with a focus on high-value MMF products. Besides, it will promote industrial development in backward regions of the country," he added.
( With inputs from ANI )
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