Gurgaon, India — September 8, 2021 — Comments by Ms. Pavethra Ponniah, Senior Vice President and Co-Group Head, Corporate Sector Ratings, ICRA Limited on PLI approval for textile:
“Production Linked Incentive (PLI) of Rs. 10,683 crore approved for man-made fibre (MMF) apparel, MMF fabrics and technical textiles; to be provided over the next five years. This will help bridge gaps in India’s textile ecosystem, aligning Indian production to the global demand for MMF and technical textiles. Globally, MMF accounts for bulk of the apparel demand, while the Indian supply-chain is skewed towards cotton apparel, with cotton apparel accounting for 55% of India’s cotton apparel exports.
The scheme will boost domestic manufacturing and self-reliance in technical fabric, apart from driving exports. The scheme is expected to attract investments of Rs. 19,000 crore during its five-year term. With the PLI prioritising women empowerment and semi-urban & rural manufacturing, ICRA expects large textile manufacturers to announce new capacities under the scheme shortly. The two-tier incentive structure, allowing investments of Rs. 100 crore and above, will encourage even the mid-sized players in the sector to set up capacities.”
Posted September 8, 2021
Source: ICRA Limited (ICRA)