This is a thrust sector for the country and a proper push in the right direction will enable further growth in the sector, especially in products where the country is still largely dependent upon imports.
The budgeted outlay under the PLI policy for textiles sector covering man-made fibres (MMF) and technical textile is proposed at INR 10,683 crore. The scheme will be implemented by the Ministry of Textiles (MoT) and is expected to be made effective shortly.
PLI scheme will attract additional investment by existing companies in the MMF and technical textile sectors and bring in new investments by Indian and multinational companies in this segment. This is an indication that the government’s focus is only on this sub-sector out of the entire textiles sector, which is still dependent heavily on imports.
This means that garments made of synthetic fibres would be eligible under the scheme as against natural fibres like cotton, which are excluded.
The main objective of the scheme is to enhance India’s manufacturing capabilities by increasing investment and production in the textile sector, especially in the MMF segment and technical textiles under greenfield and brownfield investments. This is so that there are more competencies built in India for these products which are hitherto not manufactured to the potential scale.
Another objective is to create a few large world-class global champion companies in MMF and technical textile segments, which have the potential to grow, both in size and scale, using cutting-edge technology and thereby penetrating global value chains.
Possible product category
It is expected that PLI scheme may cover approximately 40 product categories under MMF and about 10 in the technical textile segment.
The MMF category largely covers garments covered in Chapter 61 and 62 of the Customs Tariff Act like jerseys, pullovers, trousers and shirts of man-made fibres. The technical textile category may cover products like diapers, adhesive dressings, bandages and safety airbags, as covered under some specific Harmonized System of Nomenclature (HSNs) under chapter 30, 39 or 59 of the Customs Tariff Act.