Production Linked Incentive (PLI) Scheme for Textiles Part 2
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Quick Answer
A Production Linked Incentive scheme by the Ministry of Textiles offering financial incentives based on incremental turnover for companies investing in MMF Apparel, MMF Fabrics, and Technical Textiles manufacturing.
- Funding amount
- Varies
- Funding type
- Subsidy
- Provider
- Ministry of Textiles
- Application deadline
- Closed
- Eligible stage
- Revenue
- Location
- Open to startups registered in India
Results & next round
Applications for this round closed on 31 March 2026. The organiser has not published a selection list that we can verify yet.
Selections for this programme are announced by Ministry of Textiles. Official links are listed under Sources below.
We update this page when results are published, and when the next round opens.
About this subsidy
The "Production Linked Incentive (PLI) Scheme for Textiles Part-2" has been launched by the Ministry of Textiles, Government of India. This significant initiative aims to bolster the domestic production capabilities in key segments of the textile industry, specifically MMF Apparel, MMF Fabrics, and Technical Textiles. By promoting large-scale investment and manufacturing in these areas, the scheme seeks to enhance India's global competitiveness in the textile sector and significantly contribute to job creation.
Through this scheme, financial incentives are provided to companies that make eligible investments in the manufacturing of notified textile products. These incentives are directly linked to the incremental turnover achieved by the participants, structured under two components: Part-1 and Part-2. The overall implementation is managed by the Ministry of Textiles, with operational support from a dedicated Project Management Agency (PMA), and strategic oversight is provided by the Empowered Group of Secretaries (EGoS).
Key objectives of the scheme include:
- To promote the production of MMF Apparel & Fabrics and Technical Textiles products in the country.
- To enable the textile industry to achieve substantial size and scale, fostering large-scale operations.
- To position the Indian textile sector as globally competitive and a significant creator of employment opportunities for the populace.
- To support the establishment and growth of viable enterprises and cultivate a robust and competitive textile industry ecosystem within India.
Eligibility
See if you're eligible
Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
The Ministry of Textiles is the central government ministry responsible for policy formulation and promotion of the textiles and apparel sector in India. Through the National Technical Textiles Mission (NTTM), launched in 2020, the ministry aims to position India as a global…
Learn moreBenefits & Funding
What You Get
- Financial Incentive: Incentives are provided to selected participants based on the incremental turnover of notified products manufactured in India, promoting scale and competitiveness. This incentive is available for a maximum period of 5 years from the first performance year.
- Incentive Structure (Scheme Part-2): The incentive rates are tiered based on annual turnover achievement.
- Year 1: 11% on ₹200 crore turnover (resulting in ₹22 crore incentive)
- Year 2: 10% on ₹250 crore turnover (resulting in ₹25 crore incentive)
- Year 3: 9% on ₹312.5 crore turnover (resulting in ₹28.125 crore incentive)
- Year 4: 8% on ₹390.63 crore turnover (resulting in ₹31.2504 crore incentive)
- Year 5: 7% on ₹488.2 crore turnover (resulting in ₹34.174 crore incentive)
- Disbursement Mode: Incentives are disbursed through Direct Bank Transfer (DBT) to the participant’s account via the Public Financial Management System (PFMS). Claims are processed and disbursed on an annual basis, with claims processed within 45 days of submission and disbursed within 15 days of approval by the competent authority. The scheme is operational till March 31, 2030, with incentives available for 5 consecutive performance years upon meeting all eligibility conditions and turnover targets.
- Disbursement
- Milestone Based
- Duration
- 61 months
- Bootstrap friendly
- Yes
Timelines & Process
Selection Process
Applications for the PLI Scheme for Textiles Part 2 are rigorously evaluated by a dedicated Selection Committee. This committee assesses applications based on criteria such as minimum threshold investment, proposed manufacturing plans, and potential for achieving prescribed turnover targets. Shortlisted companies that meet the scheme's objectives and eligibility conditions will be selected and issued a Letter of Approval to proceed with their manufacturing investments and performance commitments.
Application Process
- 1
Visit Official Portal
Applicant accesses the scheme's online application portal.
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How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the primary objective of the PLI Scheme for Textiles Part 2?
The scheme aims to promote the production of MMF Apparel, MMF Fabrics, and Technical Textiles to achieve scale, enhance global competitiveness, and generate employment in India.
What kind of financial incentive does the scheme offer?
The scheme provides financial incentives based on the incremental turnover of notified products manufactured in India, available for a maximum period of 5 years. These incentives are paid out annually.
What is the minimum investment required to be eligible?
Applicants must invest a minimum of ₹100 crore (excluding land and administrative building) in eligible manufacturing activities to qualify for the scheme.
What are the turnover requirements for the incentive?
Participants must achieve a minimum of ₹200 crore turnover in the first performance year and demonstrate 25% incremental turnover over the previous year from Year 2 onwards to receive incentives.
How is the incentive disbursed?
Incentives are disbursed annually via Direct Bank Transfer (DBT) to the participant's account through the Public Financial Management System (PFMS), following verification and approval of claims.
What types of entities are eligible to apply?
Eligible applicants include companies, firms, LLPs, and trusts incorporated in India, provided they establish a new company under the Companies Act, 2013, and meet other criteria.
News
- Policy Update: Boosting Manufacturing GDP: Analyzing the Impact of PLI Schemes in 2026 and Beyondimpriindia.com · 3 weeks ago
- PLI scheme attracts Rs 2.40 lakh crore investments across 14 sectors, enhancing manufacturing capacity: Rem.economictimes.com · last month
- Govt weighs PLI 2.0 with sharper focus on high-performing sectorsm.economictimes.com · 2 months ago
Source: Google News aggregated
