India's textile PLI scheme: Investment thresholds cut by half to boost growth

The Ministry of Textiles has announced significant revisions to the Production Linked Incentive (PLI) Scheme for man-made fibre (MMF) apparel, MMF fabrics, and products of technical textiles, aiming to accelerate growth and enhance the ease of doing business in the sector. These amendments are designed to encourage fresh investments and foster employment, reinforcing India’s drive for leadership in the global textile market.

Key revisions include the expansion of eligible products to include eight new HSN codes for MMF apparel and nine new HSN codes for MMF fabrics. Furthermore, the minimum investment thresholds have been significantly reduced, effective August 1, 2025: the requirement for the Part-1 category is lowered from Rs 300 crore to Rs 150 crore, and for the Part-2 category, from Rs 100 crore to Rs 50 crore.

The criteria for demonstrating incremental turnover to qualify for incentives have also been relaxed from the earlier 25 percent to just 10 percent per year, starting from FY 2025–26 (for Year 2 onwards).

These changes substantially reduce financial and entry barriers, enabling faster scheme execution. To encourage wider industry participation under the revised framework, the Ministry of Textiles has extended the application portal window until December 31, 2025.