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Piyush Goyal (right), India’s Minister for Commerce & Industry, and Textiles, addressing
a press conference in New Delhi on Sept 8. Minister of State for Textiles Darshana
Jardosh is also seen. c: PIB



The Product Linked Incentive (PLI) scheme approved by the Indian government today
will help Indian companies emerge as global champions and create employment of over
7.5 lakh people, minister for textiles, commerce and industry Piyush Goyal has said.
The scheme will provide the country’s textile industry with global market, opening
lakhs of employment opportunities in rural areas.


The Product Linked Incentive (PLI) scheme approved by the Indian government today
will help Indian companies emerge as global champions and create employment of over
7.5 lakh people, minister for textiles, commerce and industry Piyush Goyal has said.
The scheme will provide the country’s textile industry with global market, and open
new jobs.


“PLI scheme for Textiles will promote production of high value MMF Fabric,
Garments and Technical Textiles in country. The incentive structure has been so
formulated that industry will be encouraged to invest in fresh capacities in these
segments. This will give a major push to growing high value MMF segment which will
complement the efforts of cotton and other natural fibre-based textiles industry
in generating new opportunities for employment and trade, resultantly helping India
regain its historical dominant status in global textiles trade,” Goyal said
at a press conference after the Cabinet approved the scheme.


Talking about the Technical Textiles segment, for which too, the PLI scheme is applicable,
Goyal said it is a new age textile, whose application in several sectors of economy,
including infrastructure, water, health and hygiene, defense, security, automobiles,
aviation, etc will improve the efficiencies in those sectors of economy.


“Government has also launched a National Technical Textiles Mission in the
past for promoting R&D efforts in that sector. PLI will help further, in attracting
investment in this segment,” Goyal added.


Explaining the scheme, Goyal said there are two types of investment possible with
different set of incentive structure. Any person, (which includes firm / company)
willing to invest minimum ₹300 crore in plant, machinery, equipment and civil
works (excluding land and administrative building cost) to produce products of notified
lines (MMF Fabrics, Garment) and products of Technical Textiles, shall be eligible
to apply for participation in first part of the scheme.


In the second part of the scheme, any person, (which includes firm / company) willing
to invest minimum ₹100 crore shall be eligible to apply for participation. In
addition, priority will be given for investment in aspirational districts, tier
3, tier 4 towns, and rural areas and due to this priority industry will be incentivised
to move to backward area. “This scheme will positively impact especially states
like Gujarat, UP, Maharashtra, Tamil Nadu, Punjab, AP, Telangana, Odisha etc,”
according to Goyal.


It is estimated that over the period of five years, the PLI Scheme for Textiles
will lead to fresh investment of more than ₹19,000 crore, cumulative turnover
of over ₹3 lakh crore will be achieved under this scheme and, will create
additional employment opportunities of more than 7.5 lakh jobs in this sector, and
several lakhs more for supporting activities.


Minister Goyal also told the press conference that the Indian government is also
focusing on signing free trade agreements (FTAs) with Western countries in order
to take full advantage of the country’s export potential. “Unlike the previous
FTAs, Prime Minister Narendra Modi-led government will consider and sign only those
agreements that give distinctive advantage to India,” he said.


Fibre2Fashion News Desk (RKS)

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