The government is considering extending the Rs 10,683-crore Production-Linked Incentive (PLI) scheme for textiles by one to two years beyond its current 2028-29 timeline, as it looks to accommodate more applicants and maximise participation under the programme, government sources told NDTV Profit.
The move comes amid what officials described as a "resounding" response to the scheme, with the Centre confident of fully allocating the entire incentive outlay by the end of the programme.
The government is also open to increasing the incentive pool if required, sources said.
About Rs 400 crore has been disbursed so far, with the scheme currently in its gestation phase. Officials expect both participation and incentive payouts to see a sharp increase over the next one to two years as more projects commence production.
A total of 96 applicants have enrolled under the scheme so far. Sources said the applicant pool has been diverse, with companies beyond the traditional textile sector, including players from logistics and mining, also expressing interest in entering textile manufacturing.
The government has stepped up engagement with beneficiaries, deploying officials for outreach programmes and query resolution to help accelerate project implementation and investment grounding.
Several approved companies have already begun production and exports, according to officials.
The Centre also cited early signs of import substitution under the scheme, pointing to raincoats as one example where imports have fallen from around $3 million to virtually zero after domestic manufacturing capacity came up.
Officials remain confident that the scheme will witness a significant jump in investments, production and exports over the coming years, strengthening India's position in global textile value chains.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
