SF Prep Notes

Textiles Ministry eases PLI scheme for MMF and technical textiles; minimum investment halved

On 9 October 2025 the Ministry of Textiles notified amendments to the PLI scheme for MMF apparel, MMF fabrics and technical textiles, halving minimum investment to ₹150 crore (Part-1) and ₹50 crore (Part-2) and cutting the incremental turnover condition from 25% to 10%.

Summary

On 9 October 2025 the Ministry of Textiles notified amendments to the Production Linked Incentive (PLI) scheme for man-made fibre (MMF) apparel, MMF fabrics and technical textiles. It added 8 new HSN codes for MMF apparel and 9 for MMF fabrics, and allowed applicants to set up project units within existing companies instead of forming new ones. From 1 August 2025, the minimum investment for new applicants falls from ₹300 crore to ₹150 crore in Part-1 and from ₹100 crore to ₹50 crore in Part-2. From FY 2025–26, the required incremental turnover to qualify for incentives (from year 2) is cut from 25% to 10%. The application portal is open until 31 December 2025.

Key facts

Scheme
PLI for MMF apparel, MMF fabrics, technical textiles
Min. investment
Part-1 ₹300 → ₹150 crore; Part-2 ₹100 → ₹50 crore (from 1 Aug 2025)
Turnover condition
Incremental turnover 25% → 10% (from FY 2025–26)
New products
8 HSN codes (MMF apparel), 9 (MMF fabrics)
Other
Units allowed within existing companies
Portal
Open till 31 Dec 2025

Practice MCQs 2 questions

Q1 Advanced

Under the October 2025 amendments to the PLI scheme for textiles, the minimum investment for new applicants in the Part-1 category was reduced to:

Show answer

Correct answer: B — ₹150 crore

PIB: with effect from 1 August 2025, the minimum investment for new applicants was reduced from ₹300 crore to ₹150 crore in Part-1 and from ₹100 crore to ₹50 crore in Part-2.

Q2 Advanced

Consider the following statements about the amended PLI scheme for textiles: 1. The incremental turnover required to qualify for incentives has been reduced from 25% to 10%. 2. The application portal has been opened until 31 March 2026. Which of the statements given above is/are correct?

Show answer

Correct answer: A — 1 only

Only 1 is correct. PIB: from FY 2025–26 applicants need a minimum 10% incremental turnover (down from 25%); the application portal is open until 31 December 2025, not 31 March 2026.

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