
PLI Scheme for Textiles — 15% to 11% (Part 1, ₹300 Crore Investment) and 11% to 7% (Part 2, ₹100 Crore Investment) Incentive on Incremental Turnover of MMF Apparel, MMF Fabrics and Technical Textiles: Eligibility, Thresholds, the 25% Growth Condition, Claim Mechanics and the 2025 Reopened Window
Video Explanation & Insights
India's reply to US tariffs — PLI scheme for the textile industry, full details
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What the scheme rewards
Approved in September 2021 with an outlay of ₹10,683 crore, the PLI scheme for textiles targets the segments where India is weakest and the world market largest: man-made-fibre (polyester, nylon, acrylic and blends) apparel, MMF fabrics, and technical textiles (automotive, medical, industrial, geo- and agro-textiles, protective wear) — about 64 product lines by HSN. It pays an incentive on incremental turnover of the notified products for five performance years after a gestation period, to companies that make a threshold investment in plant, machinery, equipment and civil works (excluding land and administrative buildings) and reach a threshold turnover. The scheme sits beside the older ATUFS/TUFS machinery subsidies and the state textile policies (Rajasthan's Textile and Apparel Policy 2025 stacks a capital and interest subsidy on top).
| Part 1 | Part 2 | |
|---|---|---|
| Minimum investment (plant, machinery, equipment, civil works) | ₹300 crore | ₹100 crore |
| Minimum turnover of eligible products to start earning | ₹600 crore | ₹200 crore |
| Incentive rate — performance year 1 to 5 | 15%, 14%, 13%, 12%, 11% | 11%, 10%, 9%, 8%, 7% |
| Growth condition | 25% increase in turnover each year over the previous year | 25% each year |
| Basis | Incremental turnover over the previous year (first year on the full eligible turnover above threshold), subject to the scheme's ceilings | Same |
| Gestation | Two years to make the investment and reach the threshold before performance years | Same |
Who qualifies
- •A company incorporated in India (including subsidiaries of foreign companies) or an LLP — not a proprietorship or partnership; one applicant per group of companies.
- •A manufacturing set-up for the notified products (greenfield or brownfield with fresh threshold investment); trading, job-work-only and SKD/CKD assembly do not qualify.
- •Sales verification: turnover of eligible products from GST returns, cross-checked with bank receipts — sales to related parties and captive consumption are excluded or scrutinised.
- •Financial and compliance tests: positive net worth, no NPA, tax and GST compliance, no fraud proceedings; audited financials for three years (or the promoter group's).
- •Investment counted from the scheme's start date within the gestation period; second-hand machinery and land are excluded.
Application, claims and the 2025 window
- 1Apply on the Ministry of Textiles PLI portal during the window (the scheme reopened applications in August 2025 with a 31 August deadline, as the video records; watch for further windows) with the company profile, project report, investment and turnover plan, three years' audited accounts, net-worth and turnover certificates by a CA, GST registration and the undertaking.
- 2Approval by the Empowered Group of Secretaries/Project Management Agency with an approval letter fixing the part, thresholds and timelines.
- 3Gestation: make the investment, reach threshold turnover; report progress quarterly.
- 4Annual claim: after each performance year, file the claim with CA-certified statements of eligible investment, turnover of notified products (GST-reconciled), exports and employment; the PMA verifies and the incentive is disbursed to the company's bank account.
- 5Ceiling check: the incentive for a year is limited by the scheme's per-applicant caps and by the growth condition — a year without 25% growth earns nothing for that year but the scheme continues.
PLI textiles: questions we are asked
Only if it can invest ₹100 crore and reach ₹200 crore turnover (Part 2) as a company or LLP — most MSMEs use ATUFS-type machinery subsidies and state policies instead.
No — the scheme covers MMF apparel, MMF fabrics and technical textiles; cotton products are outside it.
On incremental turnover of eligible products over the previous year, after the threshold is reached, with a 25% annual growth condition.
No incentive for that year; the company stays in the scheme for the remaining years.
Yes — state capital/interest subsidies and RIPS incentives stack with PLI, which is a sales-linked payment, not an asset subsidy.
Yes — eligibility test, five-year incentive model, application, net-worth/turnover certificates and the annual CA-certified claims.