Textile PLI Scheme 2.0 to hugely benefit MSMEs: CITI
November 01, 2025 | By Textile Sphere India
The Confederation of Indian Textile Industry (CITI) warmly welcomes the new production linked incentive (PLI) Scheme for Textiles announced on September 30 as the PLI Scheme 2.0 will encourage wider participation and more significantly also benefit smaller entities in the textile ecosystem.
CITI had been advocating for a more liberalized PLI Scheme for Textiles for quite some time.
“We are deeply grateful to the Hon’ble Union Textiles Minister and all concerned officials in the textiles ministry for this new-look PLI Scheme for Textiles,” CITI Chairman Shri Ashwin Chandran said. “The revisions made in the PLI Scheme will inject huge momentum to the Indian textile and apparel sector in its journey towards becoming more globally competitive,” Shri Chandran added.
The CITI Chairman said the expanded coverage of the PLI Scheme 2.0 following the addition of 8 new HSN (Harmonized System of Nomenclature) codes for MMF (Man-made Fibre) Apparel and 9 new HSN codes for MMF Fabrics will provide tremendous impetus to the MMF segment in India. The move would spur the production of high value MMF apparel and fabrics in India.
Currently, the textile ecosystem worldwide is dominated by man-made fibre. In India, though, cotton still dominates.
Shri Chandran said the flexibility allowed under the new PLI Scheme for Textiles where units could now be set up within an existing company would greatly improve the ease of doing business. Previously, companies had to establish separate units to avail the benefits of the PLI Scheme.
The CITI Chairman said the significant lowering of the investment thresholds to qualify for benefits under the new PLI Scheme effective August 1, 2025, and the changes in the turnover-linked incentive structure, would prove pivotal in fast-tracking the growth of the Indian textile and apparel sector. “The lowering of the investment thresholds and the revision in the turnover-linked incentive mechanism are worth their weight in gold,” Shri Chandran pointed out.
The revised investment thresholds are Rs 150 crore (Part 1A) and Rs 50 crore (Part 2A). In the turnover-linked incentive mechanism under the new PLI Scheme for Textiles, only 10% incremental turnover is required from year 2 onward, effective financial year 202526.
India aims to create a $250 billion domestic textile and apparel industry by 2030. The target is also to achieve textile and apparel exports of $100 billion by 2030. India’s current domestic textile industry is estimated at around $180 billion. The country’s textile and apparel exports in the financial year 2024-25 stood close to $38 billion.
#TAGS PLI Scheme 2.0, textile ecosystem, PLI Scheme for Textiles, Ashwin Chandran, Indian textile and apparel sector, HSN codes, Harmonized System of Nomenclature, MMF Apparel,