The Indian government is considering extending the Production-Linked Incentive (PLI) scheme for textiles by around four years, with relaxed eligibility criteria to encourage greater participation from micro, small and medium enterprises (MSMEs).

The proposed extension could introduce a fourth round of applications, offering businesses that were unsuccessful in earlier rounds another opportunity to qualify for incentives. The government is also considering lowering minimum investment and turnover requirements to make the scheme more accessible.

Approved in September 2021 with an outlay of ₹10,683 crore, the scheme aims to strengthen domestic manufacturing of man-made fibre (MMF) apparel, MMF fabrics and technical textiles, while improving India's competitiveness in global textile value chains.

So far, 170 applicants have been approved, committing approximately ₹41,500 crore in investments. The proposed changes are expected to encourage wider industry participation, support MSME growth and strengthen India's textile manufacturing ecosystem.