The Government of India is considering extending the Rs. 10,683-crore (US $1.12 billion) Production-Linked Incentive (PLI) scheme for the textile sector by one to two years beyond its current 2028-29 deadline, according to government sources. The move is aimed at accommodating a larger number of applicants and maximising participation under the programme.

The proposal comes in response to what officials described as a strong industry response to the scheme. Sources indicated that the government remains confident of fully utilising the entire incentive outlay by the conclusion of the programme and is also open to increasing the incentive pool if required.

Approximately Rs. 400 crore (US $42 million) has been disbursed under the scheme so far. Officials noted that the programme is currently in its gestation phase, with a significant increase in participation and incentive payouts expected over the next one to two years as more approved projects begin commercial production.

A total of 96 applicants have enrolled under the scheme to date. According to sources, the applicant base has been diverse, extending beyond traditional textile manufacturers to include companies from sectors such as logistics and mining that are seeking to enter textile manufacturing.

To support implementation, the government has intensified its engagement with participating companies through outreach initiatives and dedicated efforts to resolve operational queries. Officials said these measures are intended to accelerate project execution and ensure timely grounding of investments.

Several companies approved under the scheme have already commenced production and exports, according to government officials.

The Centre also highlighted early evidence of import substitution resulting from investments made under the scheme. Officials cited the rainwear segment as an example, noting that imports of raincoats had declined from approximately $3 million to nearly zero following the establishment of domestic manufacturing capacity.

Government officials expressed confidence that the PLI scheme would drive substantial growth in investments, production and exports over the coming years, further strengthening India’s position in global textile value chains.