The production-linked incentive (PLI) scheme for textiles, launched in September 2021, is slowly aiding a shift away from imports of niche products, official data show, building on the success of the government’s manufacturing incentive programme in electronics.
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Imports declined to zero in certain product categories, while exports of high-value textile products nearly tripled, according to data from the government.
India did not import synthetic raincoats and overcoats during 2022-25, compared with imports of $2.9 million in 2019-21.
In men’s outerwear, imports dropped 99% to $0.1 million from $23.2 million, while imports of non-woven man-made fibre (MMF) declined 77% to $10.6 million from $46.9 million in this period.
Imports of dyed knit fabrics and women’s synthetic jackets both fell: to $8.8 million from $26.5 million for dyed knit fabrics and to $2.9 million from $8.9 million for women’s synthetic jackets.
ET BureauSUCCESS STORY Imports declined to zero in certain product categories, while exports of premium textile products nearly trebled
Exports of several value-added products, meanwhile, rose. Clinical diapers recorded export growth of 193% to $7.7 million in the post-PLI period from $2.6 million before the scheme. Exports of narrow woven MMF fabrics increased 157% to $31.5 million from $12.2 million, while men’s synthetic briefs rose two-and-a-half times to $66.4 million from $26.4 million.
“There are some green shoots in some niche areas….,” a government source said, adding that these initial trends were very encouraging.
The five-year, ₹10,683 crore, PLI scheme is aimed at boosting local production of MMF apparel, MMF fabrics and technical textiles. The government has approved 170 applicants under three rounds so far, with Gujarat leading with 46 approved applicants, followed by Maharashtra (27) and Madhya Pradesh (23). These applicants have projected investments of ₹41,500 crore, more than double the original Cabinet estimate of ₹19,000 crore.
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The latest third round of the scheme attracted interest from a diverse range of companies, including Amrutanjan Health Care Ltd in Telangana, Future Electronics in Uttar Pradesh and Avsar HR Services Pvt Ltd in Bihar.
South Korea’s HS Hyosung Advanced Materials Corporation has also been approved under the third round of the scheme.