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

15% → 11%
Part 1 incentive on incremental turnover over five years (minimum ₹300 crore investment, ₹600 crore turnover)
11% → 7%
Part 2 incentive (minimum ₹100 crore investment, ₹200 crore turnover)
25%
Minimum year-on-year growth in turnover required to earn the incentive for that year
₹10,683 crore
Scheme outlay; performance period 2024-25 to 2029-30 with a two-year gestation
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Video Explanation & Insights

India's reply to US tariffs — PLI scheme for the textile industry, full details

4 videos on this topic

Overview

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 1Part 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 515%, 14%, 13%, 12%, 11%11%, 10%, 9%, 8%, 7%
Growth condition25% increase in turnover each year over the previous year25% each year
BasisIncremental turnover over the previous year (first year on the full eligible turnover above threshold), subject to the scheme's ceilingsSame
GestationTwo years to make the investment and reach the threshold before performance yearsSame
Eligibility

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.
Claims

Application, claims and the 2025 window

  1. 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.
  2. 2Approval by the Empowered Group of Secretaries/Project Management Agency with an approval letter fixing the part, thresholds and timelines.
  3. 3Gestation: make the investment, reach threshold turnover; report progress quarterly.
  4. 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.
  5. 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.
Worked example (Part 2): threshold reached with ₹200 crore turnover in year 1 → incentive 11% on the eligible turnover; year 2 turnover ₹250 crore (25% growth) → 10% on the incremental ₹50 crore = ₹5 crore, subject to the ceiling; year 3 turnover ₹300 crore (20% growth) → growth test failed, no incentive for year 3; year 4 ₹375 crore (25%) → 8% on ₹75 crore = ₹6 crore.
FAQs

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.