ENA Sectors 2024-06-21 16:59:27 <p><span style="font-size:14px"><strong>New Delhi, Jun 21 (KNN)</strong> The government is preparing to modify its production-linked incentive (PLI) scheme for the textile sector, following a tepid response from industry players.</span></p> <p><span style="font-size:14px">The revised scheme is expected to include additional product categories such as t-shirts and innerwear, reported Mint.</span></p> <p><span style="font-size:14px">Introduced in September 2021 with a budget allocation of Rs 10,683 crore, the PLI scheme aimed to stimulate domestic manufacturing of man-made fabric (MMF) garments and technical textiles.</span></p> <p><span style="font-size:14px">MMF includes synthetic materials like viscose, polyester, and acrylic, while technical textiles are utilised in specialised products such as personal protective equipment, airbags, and bullet-proof vests.</span></p> <p><span style="font-size:14px">The proposed modifications come in response to a decline in India's textile exports, which decreased by 11.69 per cent from USD 16.24 billion in 2018 to USD 14.34 billion in 2023.</span></p> <p><span style="font-size:14px">Industry stakeholders have suggested that lowering the minimum entry level could make the scheme more accessible to smaller manufacturers.</span></p> <p><span style="font-size:14px">Under consideration are plans to extend the facility setup period from two years to over three years.</span></p> <p><span style="font-size:14px">The current scheme's structure, with its substantial capital requirements, has been criticised as favoring large textile mills over apparel factories.</span></p> <p><span style="font-size:14px">To date, the government has approved 64 applicants under the scheme, with proposed investments totaling Rs 19,798 crore.</span></p> <p><span style="font-size:14px">These projects are projected to generate a turnover of Rs 1.94 crore and create 245,362 jobs. The first set of approved applicants is scheduled to begin receiving incentives from 2025-26.</span></p> <p><span style="font-size:14px">The textile industry awaits further details on the proposed changes, as the government seeks to bolster this crucial sector of the Indian economy.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 38306 https://knnindia.co.in/news/newsdetails/sectors/govt-to-revamp-textile-sector-incentive-scheme-amid-export-decline 2024-06-21 16:59:27 knnindia.co.in