The Indian government has approved 17 companies under the textile sector’s Production Linked Incentive (PLI) scheme, aiming to boost domestic manufacturing and increase sales by Rs 12,893 crore. These new projects are set to enhance capacity, reduce imports, and strengthen the country’s global textile market position.
India approves 17 firms under textile PLI scheme aiming to increase sales by Rs 12,893 crore, enhancing domestic manufacturing and export potential.
In a major boost to the textile sector, the Indian government has approved 17 firms under the Production Linked Incentive (PLI) scheme, with the objective of enhancing domestic manufacturing capacity and driving substantial sales growth. Announced on November 18, 2025, this development comes as part of the government’s ongoing efforts to promote self-reliance and strengthen the textile industry amidst global supply chain realignments.
The PLI scheme, designed to incentivize production and exports in key sectors, has recognized these 17 companies for their project proposals, which collectively anticipate a sales uplift of Rs 12,893 crore over the scheme period. The approved firms represent a mix of established textile manufacturers and new entrants focusing on diversified product lines including fabrics, garments, and technical textiles.
According to government sources, the scheme will provide financial incentives tied to incremental production and sales, thereby encouraging investments in state-of-the-art technology and capacity expansion. This initiative aligns with the government’s vision to transform India into a global textile hub by boosting value addition within the country.
“The approval of these 17 projects marks a significant milestone in our pursuit of a self-sustaining textile ecosystem,” a senior official from the Ministry of Textiles stated. “We expect these incentives to foster competitive manufacturing, create employment, and reduce dependence on imports, particularly in high-value segments.”
The textile sector, contributing significantly to India’s GDP and employment, has been identified as a key area for export promotion. The government’s PLI scheme aims not only to increase production volumes but also to enhance quality standards and integrate global best practices.
Industry analysts note that the textile industry faces challenges such as rising input costs and competition from countries like Bangladesh and Vietnam. However, the government’s backing through the PLI scheme is expected to address these hurdles by providing resources and fostering innovation.
Several of the approved firms plan to invest in advanced machinery and sustainable production processes to meet global environmental standards, which have become critical to maintaining export competitiveness. The move is anticipated to position India favorably in international markets demanding eco-friendly textiles.
The implementation phase will involve close monitoring to ensure compliance with scheme conditions and timely execution of projects. The government has also emphasized the importance of collaboration between public bodies and private players to maximize the benefits of the initiative.
In summary, the approval of 17 companies under the textile PLI scheme is poised to significantly increase domestic production capabilities, boost exports, and create employment opportunities, reflecting the government’s strategic commitment to the sector’s growth.
