India’s PLI Scheme for Textiles: Full List of Beneficiaries

India's PLI Scheme for Textiles has selected 64 eligible textile investors to receive incentives over five years. Seven foreign enterprises from the US, Japan, South Korea, Israel, Germany, and Sri Lanka have applied successfully through their Indian subsidiaries. Gujarat has the most proposed projects, and Madhya Pradesh has attracted the largest proposed investment.

We provide the list of selected PLI beneficiaries under round one of the PLI scheme in this article - valuable information for foreign investors seeking to partner with Indian textile manufacturers. A second round of the PLI Scheme is anticipated in 2023. Officials note that while the first round encouraged investments in capital and machinery, a PLI 2.0 scheme would focus on small and medium sized businesses.

Introducing the scheme

The Production-Linked Incentive (PLI) Scheme for Textiles – focuses on manmade fiber (MMF) apparel, MMF fabrics, and products of technical textiles to enhance India’s manufacturing capabilities and exports.

Notification for the scheme was issued on September 24, 2021 and operational guidelines for the PLI Scheme were issued on December 28, 2021. 

The scheme is effective as of its September 2021 notification and will provide incentives for a period of five years, covering FY 2025-26 to FY 2029-30, with a budgetary outlay of INR 106.83 billion based on incremental turnover achieved during FY 2024-25 to FY 2028-29.

However, companies meeting the investment and performance targets one year early will become eligible one year in advance, that is from 2024-25 to 2028-29, for the duration of the scheme.

It must be noted that the government relaxed eligibility criteria in February 2022 so that if a company was registered before the notification date of September 24, 2021, if the company had not commenced production, it will be considered a new company eligible for benefits under the PLI scheme. Nonetheless, any investments made before the notification date will not be counted as eligible investment.

India's textile and apparel exports from FY 2018 to FY 2022

Source: DGCIS Provisional Data, Government of India

List of applicants selected under the PLI Scheme for Textiles

Applications under PLI Scheme for Textiles were received from January 1, 2022 to February 28, 2022.

The scheme has two parts: Part 1, where minimum investment is INR 3 billion and minimum turnover required is INR 6 billion and Part 2, where minimum investment is INR 1 billion and minimum turnover required INR 2 billion. A total of 67 applications were received – 15 applications under Part 1 and 52 applications under Part 2.

Initially, 61 applicants were announced as beneficiaries, but three more companies were added as of May 3, 2022. Total applications approved under Part 1 is now 14 and under Part 2 is 50.

In the approved 64 applications so far, the proposed total investment is INR 197.98 billion and projected turnover of INR 1.939 trillion with a proposed employment of 245,362. The scheme is projected to utilize a little more than INR 66 billion for current investors.

The selected applicants include seven foreign groups from countries, including the US, Japan, South Korea, Israel, Germany, and Sri Lanka. These groups will produce in India through their local Indian subsidiaries.

Proposed investments, number of projects, and locations

As of December 2022, the central government has granted approval letters to 56 out of 64 selected companies. Additionally, investments worth INR 15.36 billion have been made by the end of the same year.

Under the PLI Scheme, 14 projects have been approved under Part 1 (with a minimum investment of INR 3 billion), while 50 projects have been approved under Part 2 (with a minimum investment of INR 1 billion).

The states of Madhya Pradesh, Gujarat, Maharashtra, and Andhra Pradesh have received the highest investment under the PLI Scheme. Madhya Pradesh has secured the largest investment amount of approximately INR 35.13 billion, while Gujarat has received the most number of proposed projects with 13.

Source: Business Standard

List of all 64 selected applicants - PLI 1.0 Scheme for Textiles

For the companies selected as eligible under the PLI scheme, see the table below.

Second edition of the PLI scheme 

The central government is working to update the PLI scheme for the textile industry with a second edition that is dedicated to apparel and garments as widely reported by the media. The PLI 2.0 scheme could cover makers of apparel and home textiles, such as blankets and bed spreads, and textile accessories like lace, button, and zippers. 

The Economic Times reports that the textiles ministry is considering three investment thresholds of INR 150 million, INR 300 million, and INR 450 million, with double turnover as the criteria for incentives that would range between eight percent and 10 percent under the INR 42 billion scheme. The PLI 2.0 edition could add criteria, such as minimum number of stitching and sewing machines, among the benchmarks to be eligible for incentives. Selected firms would need to achieve the minimum turnover - that is, two times the investment, in the first year, followed by 20 percent increase in turnover over the previous year in the second year.

This article was originally published May 4, 2022. It was last updated April 6, 2023.