"PLI scheme for Textiles will promote production of high value MMF Fabric, Garments and Technical Textiles in country. The incentive structure has been so formulated that industry will be encouraged to invest in fresh capacities in these segments. This will give a major push to growing high value MMF segment which will complement the efforts of cotton and other natural fibre-based textiles industry in generating new opportunities for employment and trade, resultantly helping India regain its historical dominant status in global textiles trade," Goyal said at a press conference after the Cabinet approved the scheme.

Talking about the Technical Textiles segment, for which too, the PLI scheme is applicable, Goyal said it is a new age textile, whose application in several sectors of economy, including infrastructure, water, health and hygiene, defense, security, automobiles, aviation, etc will improve the efficiencies in those sectors of economy.

"Government has also launched a National Technical Textiles Mission in the past for promoting R&D efforts in that sector. PLI will help further, in attracting investment in this segment," Goyal added.

Explaining the scheme, Goyal said there are two types of investment possible with different set of incentive structure. Any person, (which includes firm / company) willing to invest minimum ₹300 crore in plant, machinery, equipment and civil works (excluding land and administrative building cost) to produce products of notified lines (MMF Fabrics, Garment) and products of Technical Textiles, shall be eligible to apply for participation in first part of the scheme.

In the second part of the scheme, any person, (which includes firm / company) willing to invest minimum ₹100 crore shall be eligible to apply for participation. In addition, priority will be given for investment in aspirational districts, tier 3, tier 4 towns, and rural areas and due to this priority industry will be incentivised to move to backward area. "This scheme will positively impact especially states like Gujarat, UP, Maharashtra, Tamil Nadu, Punjab, AP, Telangana, Odisha etc," according to Goyal.

It is estimated that over the period of five years, the PLI Scheme for Textiles will lead to fresh investment of more than ₹19,000 crore, cumulative turnover of over ₹3 lakh crore will be achieved under this scheme and, will create additional employment opportunities of more than 7.5 lakh jobs in this sector, and several lakhs more for supporting activities.

Minister Goyal also told the press conference that the Indian government is also focusing on signing free trade agreements (FTAs) with Western countries in order to take full advantage of the country's export potential. "Unlike the previous FTAs, Prime Minister Narendra Modi-led government will consider and sign only those agreements that give distinctive advantage to India," he said.

Fibre2Fashion News Desk (RKS)