14th September 2021, Mumbai:

Shahi Exports, Orient Craft, and Pallavaa Group, India's largest garment exporters, are among the major firms interested in the Production Linked Incentive (PLI) plan.

In India, there are over 1,350 textile enterprises with annual exports of over Rs. 100 crore and these businesses are likely to profit the most from this plan.

A few other major corporations are also interested in this program and want to apply. The Ministry of Textiles has decided to exclude non-GST and non-banking channel sales in computing the yearly turnover, according to Vijoy Kumar Singh, Additional Secretary, Ministry of Textiles. 

As a result, no one may claim cash sales by claiming that they occurred in a store without creating a bill. “Nobody would be permitted to game the system,” he claimed. It's worth noting that the Ministry of Textiles (MoT) is scheduled to release comprehensive rules for the program, after which the industry will be asked to submit applications. This is scheduled to begin in November 2021.

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14th September 2021, Mumbai:

As per H'ble PM, Narender Modi with this initiative, India is poised to regain its dominance in the Global Textiles Trade.

Of late PLI Scheme for Textiles with an outlay of Rs. 10,683 crore has been approved putting Indian Textile sector on the road to recovery. Having gone down this path the trade is likely to regain global competitiveness and on the back of the fact, country is also trying to fast track FTA pursuit with the UK & EU market which are the stronghold for Textile industry exports.

Taking steps forward towards the vision 'Aatmanirbhar Bharat', the Government approved the PLI Scheme for Textiles for MMF Apparel, MMF Fabrics, and 10 segments/ produce Technical Textiles with a budgetary offer of Rs. 10,683 crore. PLI schema for Textiles promote production of high-value MMF Fabric, Garments and Technical Textiles in-country.

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9th September 2021, Mumbai:

Minister of Textiles Piyush Goyal discusses the purpose of the PLI for the textile industry. Excerpts that have been edited: What are your thoughts on the PLI for the textile industry?

Piyush Goyal (Piyush Goyal): PM Modi conceived the Production-Linked Incentive plan as a means to make India more internationally competitive by allowing large-scale production to take advantage of economies of scale while also improving the quality of the items that India produces.

We've already had a lot of success in industries including pharmaceuticals, medical devices, and mobile manufacturing. As a result, we've expanded our scope to include new industries, the most recent of which being textiles. It's fascinating to note that, due to climatic circumstances and our history, India has mainly focused on the cotton-based textile sector. We'll keep focusing on it since it generates a lot of jobs. It is the country's most populous industry. In addition, we have our own strengths in the industry.

However, if you look at the global market today, man-made fibers (MMFs) and technical textiles account for two-thirds of the global market and international trade. We have squandered that chance in recent years. MMF and technical fabrics are the subjects of this PLI program. It would encourage people to build larger-scale industries, with a minimum investment of Rs 100 crore at one level and Rs 300 crore at another, and a promise to have a turnover or production of at least twice that amount, i.e. Rs 200 crore and Rs 600 crore.

The concept is to develop global champions who can capture the whole value chain. We are now completely reliant on imported textiles. In India, a lot of processing isn't done. As a result, the goal is to capture the whole value chain.

The Prime Minister has already instructed the petrochemical sector and the petroleum ministry to work together to establish backward linkages for enough raw materials generated in India.

The aim is that by implementing this program, we would be able to make MMF and technological textiles feasible, immediately creating 7.5 lakh employment, as well as capturing the entire value chain and expanding investments all the way down to petrochemicals.

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14th September 2021, Mumbai:

As per industry sources as many as 35 companies lining up investment in the proximity of Rs 10,000-crore on the back of the Textile PLI scheme announcement.

Possible deterrents

The textile sector is fraught with some of the irritants viz the stringent parameters, such as the Rs 600-crore turnover and targets of additional incremental turnover of 25 percent over the preceding year which could be looked into by the administration; the policy intervention for the requisite ease of doing business can be a life-changer at this point in time when the developed world is pursuing seriously China +1 policy and India optically is in the sweet spot.

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11th September 2021, Mumbai:

The textile industry is buzzing with anticipation as the PLI programme is approved by the government. The plan, which is aimed at high-net-worth individuals, has struck the right chord.

Indo Count Industries, Welspun India, and Himatsingka Seide in the home textiles segment; Vardhman Textiles, KPR Mill, and Ambika Cotton in the yarn and fabric segment; and Gokaldas Exports, KPR Mill, and SP Apparels in the apparel segment have already expressed interest in the scheme and have the potential to invest.

MMF and technical textile, the two sectors targeted for incentives ranging from 3 to 11% of incremental revenues year-on-year for five years, are the sectors with the most potential for the textile industry on a global platform, and the companies expect a significant increase in their reach and profitability in the next decade.

In fact, the inclusion of both the MMF and technical textile sectors in the PLI program emphasizes their relevance in increasing India's global textile trade share. Textiles have historically been one of India's major foreign exchange earners, but its proportion of exports has plummeted from 24% in 2000 to just 11% in 2020, highlighting the need to reflect and move quickly.

As global trends, demand, the textile supply chain must go beyond cotton and cotton blends, as clothing production increasingly relies on MMFs. Only a fifth of all textile items in India's conventional textile export basket is composed of synthetic fiber, with the remainder being cotton.

Many opponents of the PLI program argue that only large corporations would gain from it, forgetting that all exporters are losing revenue due to the shortage of MMF textiles in the nation. If financially successful firms invest backstream, every company in the chain will profit as a whole, with more goods to offer in the total textile and clothing basket.

The government has addressed several structural difficulties in the MMF industry in recent months, which have stifled the sector's expansion. The elimination of anti-dumping duties on Purified Terephthalic Acid (PTA) and Viscose Staple Fibre (VSF), as well as the rejection of proposed anti-dumping duties on PSF, MEG, and other products, have made MMF fiber and yarn inexpensively available to domestic players at internationally competitive prices.

The government has also earmarked Rs.1,480 crore under the Technology Mission on Technical Textiles to encourage R&D efforts in the industry, which is a foresightful step. This is a clear acknowledgment of the importance of technical textiles in the overall growth of various sectors of the economy, including infrastructure, water, health and hygiene, defense, security, cars, aviation, and so on.

The establishment of the PLI program has provided the most recent push. In five years, the programme is anticipated to attract over Rs. 19,000 crore in new investment, an Rs. 3 lakh crore increase in production turnover, and 7.5 lakh extra jobs, considerably increasing the size of the textile sector.

Incentives of around Rs. 70 billion for MMF apparel and around Rs. 40 billion for technical textiles are on offer under the scheme, and experts believe it will have a positive impact on the industry, particularly in states like Gujarat, Uttar Pradesh, Maharashtra, Tamil Nadu, Punjab, Andhra Pradesh, Telangana, and Odisha, where many new projects are being developed. Roughly 40 MMF clothing product types are projected to be covered under the plan, with around 10 in the technical textile category.

There is little question that the PLI program is important for the textile industry's future since India's historic position in the sector has been eroded by newcomers like Bangladesh and Vietnam. Despite having a comprehensive supply chain in textiles all the way up to the retail level, the industry has lost momentum in the last decade.

However, with corporations increasingly entering the game with significant investment, the future appears bright.

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