Textile Ministry's Revised PLI Plan for Garment Sector Temporarily Delayed
29 August 2023, Mumbai
The Textile Ministry's recent proposal to introduce a Production Linked Incentive (PLI) plan tailored for the garment and made-ups sector seems to have hit a roadblock, as per insider information.
Focal point
The focus of this proposed plan was to support the country's garment manufacturers by offering incentives.
However, the Finance Ministry's reported rejection has caused a setback. The proposal aimed to extend the PLI scheme to encompass all materials, but the Finance Ministry apparently resisted lowering the investment and turnover limits as suggested by the Textile Ministry.
Efforts by the Textile Ministry to expand the successful Production Linked Incentive (PLI) scheme to include the garment and made-up sector have been met with resistance from the Finance Ministry. The original scheme had bolstered various industries, and the Textile Ministry sought similar benefits for garment manufacturers.
The secret lies in making investments happen
However, the Finance Ministry's reluctance to reduce the investment and turnover thresholds has led to a standstill. The proposed extension aimed to encompass all materials, including cotton, but disagreement over criteria persists.
In a bid to attract more investment, the Textiles Ministry has extended the deadline for investor applications until August 31, 2023. The ministry is confident that this move, coupled with the recent flexibility introduced in the criteria for the original PLI plan, will lead to increased interest.
Despite setbacks in expanding the scheme to garments and made-ups, the Textiles Ministry remains proactive in fine-tuning its approach to incentivize the textile sector's growth.
The Textile Ministry's attempts to revamp the PLI scheme have encountered obstacles due to varying perspectives within the government.
Dithering; While the ministry aimed to expand the successful incentive program to benefit the garment and made-up sector, the Finance Ministry's concerns about altering investment and turnover criteria led to a stalemate.
The Textile Ministry's decision to extend the investor application deadline showcases its determination to drive textile industry growth through strategic modifications while navigating bureaucratic complexities.
