Executive Summary

The Production Linked Incentive (PLI) Scheme represents a pivotal intervention in India’s industrial policy, designed to bolster domestic manufacturing, attract investments, and reduce import dependence across strategic sectors, including textiles. This study evaluates the scheme’s potential to transform India’s textile manufacturing landscape, with a focus on man-made fiber (MMF) apparel, fabrics, and technical textiles. Through an analytical framework encompassing economic impact, export performance, and employment generation, the study highlights the scheme’s alignment with India’s Atmanirbhar Bharat mission. While the PLI scheme promises significant benefits such as enhanced production capacities, export growth, and technological advancements, it also faces challenges, including stringent eligibility criteria, global competition, and underutilization of allocated funds. By addressing these challenges and integrating sustainable practices, the PLI scheme can pave the way for a competitive and resilient textile sector. This evaluation underscores the critical role of targeted policies in fostering industrial growth and global competitiveness.

Keywords: Production Linked Incentive (PLI) Scheme, Domestic Textile Manufacturing, Man-Made Fiber (MMF), Atmanirbhar Bharat, MSME Participation

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