§1Who it is for

  • MMF apparel, MMF fabric and technical textile manufacturers
  • MSMEs (68% of Round 3 applicants)

Useful if

Reference for textile founders; suppliers to PLI units and PM MITRA parks.

Do not spend time on it if

New applicants — entry closed.

§2Eligibility

  1. Part-1 (new applicants from 01.08.2025): invest minimum ₹150 crore in plant, machinery, equipment and civil works (excluding land and admin building).
  2. Part-2 (new applicants): minimum ₹50 crore on the same basis.
  3. Original 2021 rule: Part-1 ₹300 crore investment and ₹600 crore turnover; Part-2 ₹100 crore investment and ₹200 crore turnover.
  4. Applicant may set up a separate project unit inside an existing company with distinct books (new-company rule removed Oct 2025).
  5. Only new investments count.
  6. Existing applicants may apply with fresh investment of at least 15% of the segment's minimum threshold.
  7. Only sales through normal banking channel count; trading and outsourced job work excluded.

§3Benefits

  • Part-1: 15% incentive in Year 1 on required turnover, reduced by 1% each year to 11% in Year 5.
  • Part-2: 11% in Year 1, reduced by 1% each year.

§4Norms — pattern of assistance

  1. From FY2025-26, minimum additional incremental turnover reduced from 25% to 10% from the 2nd performance year.
  2. Cap of 10% over the prescribed minimum incremental growth when calculating incentive (2021 notification).
  3. Incentive applies on turnover up to two times the investment (2021 notification).
  4. Total fund outgo and duration fixed; incentives up to FY2028-29.

§5Documents

Not published

The guideline does not list the documents. Ask the portal or bank before you apply — we do not make up lists.

§6How to apply

  1. 1

    Closed for new entry after FY2025-26. Approved firms file claims on pli.texmin.gov.in.

§7Pros and cons

Merits

  • Oct 2025 changes halved entry investment and cut turnover growth test to 10%, which pulled in MSMEs (PIB Jul 2026).
  • High incentive rate (11–15%) vs most PLIs.

Demerits

  • Weak take-up before 2025: in Maharashtra, 24 approved firms had invested only ₹167.51 crore by 31 Mar 2026 and no incentive released (Lok Sabha, Jul 2026).
  • Even after cuts, ₹50 crore minimum investment is beyond small units.
  • Entry closed; late entrants get a short incentive period.

→Related schemes

Need help with PLI Textiles?

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Our interestHelp is our paid service. You can also apply for the scheme yourself.

Sources

  1. Gazette notification 24 Sep 2021: PLI Scheme for Textiles
  2. Gazette notification 9 Oct 2025: Amendment & addition, PLI for Textiles
  3. PIB, 9 Oct 2025: Major amendments in PLI Scheme for Textiles
  4. PIB, 28 Jul 2026: Lok Sabha reply — PLI Scheme (Textiles)
  5. Ministry of Textiles: PLI Operational Guidelines 28 Dec 2021
  6. PIB Cabinet, 11 Nov 2020: PLI for 10 key sectors (outlay table)

Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.