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Textile Ministry plans to introduce a new Production Linked Incentive (PLI) Scheme for boosting the textile sector in India. Currently this scheme is about to cover 50 sectors thereby encouraging the production of domestic products. It aims at promoting production of goods like sanitary pads, tampons, sweaters and jerseys. This scheme will generate new employment opportunities in the country. It will end reduce imports and promote exports in the long run. This is a crucial step towards Aatmanirbhar Bharat and it empowers the same vision.
Scheme Overview:
| Scheme Type: | Textile scheme with Production Linked Incentive |
| Scheme Under: | Central Government |
| Estimated Budget: | Rs, 10,000 Cr. |
| Beneficiaries: | 50 sectors aiming enhanced domestic production |
| Major Objective: | To boost production and exports thereby generating huge employment opportunities |
Scheme Objectives and Benefits:
- The main objective of the scheme is to increase production thereby increasing exports
- This scheme will enable to generate employment opportunities in various sectors of the economy
- Under this scheme textile sector in the economy is at the core
- This scheme will also enable increased productivity and innovation
- In the long run, it will impact increased economic growth ad development
- It is a crucial step towards Aatmanirbhar Bharat and Make in India mission.
Scheme Details:
- Textile Ministry plans to come up with a new textile scheme with production linked incentive with Rs. 10,000 Cr. budget
- This scheme focuses to boost the textile sector thereby increasing the domestic production
- It applies to the domestic products like sanitary pads, tampons, sweaters and jerseys
- Currently the textile ministry has planned to cover 50 sectors under this scheme
- Under this scheme 3 categories will be provided incentives which will include companies/ manufacturers in Rs. 100-400 crores bracket and 50% incremental turnover with 9% seed funding
- Those with Rs. 400 Cr. and above turnover will get 7% seed funding
- Base year for turnover calculation will be considered as 2019-20
- This scheme is expected to come into force from 2022
- Initial investment of Rs. 500 Cr. will be required for new companies entering the textile market
- Greenfield category will be applied to such industries with 11% incentive funding
- It will increase employment opportunities in the country
- It boosts manufacturing sector thereby aiming to curb imports and increase exports
- Textile scheme is a vital step towards Aatmanirbhar Bharat and Make in India mission
