Home / News / India /  Govt to come out with second PLI scheme for textiles: Goyal
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COIMBATORE : The Union government is set to come out with a second production linked scheme (PLI) for the textiles sector, to give further boost to manufacturing and exports of apparel, commerce and industry minister Piyush Goyal said at an industry event on Saturday.

On possibility of extension of customs duty on cotton, he said that that with global cotton prices easing, government did not see the need to extend the customs duty waiver beyond September. However, if needed, it may look at extending it by another month. The finance ministry had in April waived the 10% customs duty on cotton imports till September 30 in a bid to ease price for the textiles industry and end consumers.

"Cotton prices have already started easing...and cotton is becoming more affordable. So I don't think there is a need need to extend customs duty waiver beyond September.. if at all required, we may extend it by a month or so," said Goyal.

He said that the government will soon seek cabinet approval for the second PLI scheme on textiles.

"The textiles sector has a production linked incentive scheme... we are thinking of coming up with one more PLI scheme for the textiles sector. The details of which will be shared with all of you very soon," said Goyal at the textile fair in Coimbatore.

He said that the government is still engaging with the industry on that.

"We are keen to support the apparel manufacturing sector... Dialogue is going on between textiles ministry, DPIIT, and Niti Aayog. After consultation with the industry, we will be devising a second PLI scheme and putting before the Cabinet and with the support of Prime Minister..." said Goyal, who is on a two day visit to Coimbatore and Tirupur to interact with industry.

The government had in the first edition of the textiles PLI scheme approved 61 applications of companies including Trident Ltd, Kimberly Clark India, Monte Carlo Fashion, and Arvind Ltd with an investment potential of over 19000 crore. The government had in December approved the PLI scheme for textiles, offering incentives worth 10,683 crore over five years for manufacture of man-made Fibre apparels- jerseys, overcoats, trousers, shifting, etc., man-made Fibre (MMF) fabrics and products of technical textiles.

The scheme is focused on expanding Manmade Fibres and technical textiles segments’ value chain to help India regain its dominant status in global textiles trade.

The scheme is operational from 24 September, 2021 to 31 March 2030.

The second edition of the scheme is likely to focus on segments under textiles not covered in the earlier scheme.

Goyal said that the government has made focused efforts to ensure growth of the textiles sector. "We have set before us a target of doubling textiles production to 20 lakh crore in five years and triple textile exports to 8 lakh crore during this period," said Goyal.

He reiterated that the textiles sector in an integral part of the free trade agreements being entered into by India. "We have signed an FTA with UAE, Australia, and in negotiations with the EU, the UK, Israel, and the Gulf Cooperation Council," said Goyal.

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