Govt To Extend PLI Benefits To Smaller Textile Firms To Boost Exports

ENA Sectors 2024-06-26 16:39:40 New Delhi, Jun 26 (KNN) The Indian government is planning to extend production-linked incentives (PLI) to smaller textile firms as part of its strategy to increase garment exports to USD 50 billion by 2030, according to Federal Textile Minister Giriraj Singh. Speaking at the India International Garment Fair on Tuesday, Singh announced that the government is considering a review of the PLI scheme, which was introduced in 2021 for the textile sector. To date, 64 proposals worth 198 billion rupees have been approved to promote production of man-made fibre fabric, garments, and technical textiles. The minister highlighted additional measures to support the industry, including state incentives for improving product quality, entering new markets, and signing free trade agreements with countries such as the UAE and Australia. These efforts aim to bolster the labour-intensive textile sector, a priority for Prime Minister Narendra Modi's administration. We are working on a roadmap to move ahead of China, not only Bangladesh in textiles, Singh stated, adding that his ministry plans to hold meetings with major companies to address their concerns. The expansion comes as India's USD 170 billion textile and apparel industry, which employs over 45 million people, faces challenges. Exports have declined due to reduced consumer spending in Europe and the United States amid tighter monetary conditions. Commerce ministry data shows textile and apparel exports fell to USD 35.94 billion in the 2023-24 fiscal year from a record Rs 44.51 billion in 2021-22. In response, garment exporters are lobbying for changes to the PLI scheme ahead of the upcoming annual budget. Their requests include lowering the investment threshold limit to 150-300 million rupees from the current 10-30 billion rupees, as well as higher subsidies on bank loans. Mithileshwar Thakur, Secretary General, Apparel Export Promotion Council, emphasised the need for broader support, by stating, The government needs to lower the threshold investment limit and expand PLI benefits to all garments across all fibres. Currently, the government offers 4-6 per cent cash incentives over five years to selected companies that meet production targets. The proposed expansion of the PLI scheme to smaller firms signals the government's commitment to revitalising the textile sector and enhancing India's competitiveness in the global market. (KNN Bureau) 38361 https://knnindia.co.in/news/newsdetails/sectors/govt-to-extend-pli-benefits-to-smaller-textile-firms-to-boost-exports 2024-06-26 16:39:40 knnindia.co.in Govt To Extend PLI Benefits To Smaller Textile Firms To Boost Exports