PLI scheme for fabrics sector: The payout will be spread out for five yearsThe government approved the production-linked reward (PLI) scheme worth Rs 10,683 crore for the fabrics sector on Wednesday, September 8, to increase domestic production and exports.
The scheme will help in developing direct extra work of more than 7.5 lakh people and a number of lakhs more for supporting activities.
The payment will be topped a duration of 5 years, as part of the rewards approved for the textiles sector.
The decision was taken by the Cabinet chaired by Prime Minister Narendra Modi.
The PLI plan is approved for fabrics, MMF (man-made fiber) apparel, MMF materials, and 10 sectors or items of technical textiles.
The plan will lead to the production of high-value MMF fabric, garments, and technical fabrics in the country.The government approximates that over 5 years, the PLI Plan for textiles will result in a fresh investment of more than Rs.19,000 crore, together with a cumulative turnover of over Rs.3 lakh crore.The production-linked reward scheme for fabrics is part of the overall announcement of the scheme for 13 sectors made earlier during Spending plan 2021-22, with an expense of Rs 1.97 lakh crore.
With the PLI plans for these 13 sectors, the minimum production in the country is expected to be around Rs.
37.5 lakh crore over a period of five years.The scheme will prioritise financial investment in aspirational districts, tier 3, tier 4 towns, and backwoods.
Primarily, the textiles market employs ladies, so the PLI plan will encourage females and increase their participation in the official economy.
It will impact specially states such as Gujarat, Maharashtra, Uttar Pradesh, Tamilnadu, Punjab, Odisha, amongst couple of others, according to the government.