![](https://www.nextias.com/ca/wp-content/uploads/2023/07/4956737Screenshot.png)
In News
- The Government has approved the Production Linked Incentive (PLI) Scheme for Textiles with a budgetary outlay of Rs. 10,683 crore.
- The scheme has been designed with a view to providing a big fillip to the man-made fibres and technical textiles segments of the industry.
- With this, India is poised to regain its dominance in the Global Textiles Trade.
About Production Linked Incentive (PLI) Scheme
|
Details of the PLI Scheme in Textile Sector
- Aim of the Scheme:
- To promote industries that invest in the production of 64 select products.
- The product lines include
- 40 in man-made fibre apparel,
- 14 in man-made fibre fabrics, and
- 10 technical textile segments/products.
- The investment period is 2 years, and the incentive will be paid for 5 years after the first year of post-investment operation.
- The scheme is for two types of investments.
- The first entails a minimum of ?300 crores in plant, machinery, equipment and civil works in a unit.
- The unit must register a minimum turnover of ?600 crores once it commences operation.
- The second is for a minimum of ?100 crore, where the business achieves a minimum turnover of ?200 crores.
- The first entails a minimum of ?300 crores in plant, machinery, equipment and civil works in a unit.
- Thus, the incentive is based on a combination of investment and turnover.
- Priority will also be given to investment in aspirational districts, Tier3, Tier4 towns, and rural areas.
Why so much importance to Man-made Fibre?
What are Technical Textiles?
|
Expected benefits from the Scheme
- Lower dependence on imports
- During 2018-19, the import of man made fibre garments and the man-made fibre yarn and fabrics jumped up significantly.
- Recently, the government removed the anti-dumping duty on viscose staple fibre and Purified Terephthalic Acid,
- This step has made most man-made fibre available in India at internationally competitive prices.
- With an incentive to invest in production too, Indian manufacturing of manmade fibre value added products is expected to increase.
- Thus, it will bring down imports, especially of man made fibre apparel and fabrics, from countries such as China and Bangladesh.
- Leveraging Economies of Scale, the scheme will help Indian companies to emerge as Global Champions in the Textile Sector.
- It will incentivise the companies to grow more as higher the turnover, more is the incentive.
- Reduce unemployment:
- It will help in the creation of additional employment of over 7.5 lakh people directly and several lakhs more for supporting activities.
- The scheme will also pave the way for the participation of women in large numbers.
- As it is evident from the experience of Bangladesh, the Textile and Apparel industry helps in women empowerment.
- New Investment and Production Boom:
- It is expected that this scheme will result in a fresh investment of above Rs 19,000 crore.
- It may also result in an additional production turnover of over Rs.3 lakh crore in 5 years.
- Focus on Aspirational Districts:
- Higher priority for investment in Aspirational Districts & Tier 3/4 towns
- The scheme will positively impact especially States like Gujarat, UP, Maharashtra, Tamil Nadu, Punjab, AP, Telangana, Odisha etc.
Criticism of the Scheme
- Less or No impact on Traditional Textile Segment
- The scheme will not impact traditional textile segments such as jute or cotton.
- Separate schemes will be required for them.
- Targets Limited Number of Players even in Target Segment
- It has minimum investment thresholds and select product lines and hence targets a limited number of players.
- Yet to announce the final list
- The final list of products eligible for the scheme is yet to be notified even 10 months after the proposal.
- It is expected that most of the top globally traded man-made fibre products in which India’s share is less than 5% will be covered in the final list.
Conclusion and Way Ahead
- The Scheme can give a boost to AtmaNirbhar Bharat and must be quickly rolled out.
- For this timely rollout of the final list of covered products is required.
- Not covering the traditional segments can ensure focus on exactly where it is required.
- The sectors like Jute and Cotton have a large number of industries spread across micro, small and medium enterprises and large scale operations.
- They will continue to invest and grow in the fields they are strong in.
- So for the time being we can focus on Man-made fibres.
Source: TH
Previous article
National Intelligence Grid ( NATGRID)
Next article
Facts In News