Source: IE
Context: India’s Production Linked Incentive (PLI) scheme is set to boost the textile sector, with disbursements starting this fiscal year. The initiative aims to address stagnation in India’s textile exports, enhance competitiveness, and promote job creation in the sector.
Summary:
- PLI for textiles: About a dozen companies will receive incentives under the scheme for man-made fibers (MMF) and technical textiles this year.
- Export stagnation: India’s textile exports remain stagnant at $35 billion, while competitors like Vietnam and Bangladesh gain market share through trade agreements.
- Job creation target: The government aims to create 4.5 to 6 crore jobs in the textile sector by 2030, while increasing the sector’s market size to $350 billion.
About the PLI scheme:
- Origin: Launched in 2021 to boost domestic manufacturing, reduce imports, and enhance exports.
- How it works: Provides performance-linked incentives based on incremental sales of domestically manufactured products.
- Sectors covered: Includes 13 sectors such as electronics, textiles, automotive, pharmaceuticals, telecom, and renewable energy. Budget: Rs 1.97 lakh crore ($28 billion).
Insta Links:
