Another PLI scheme for textile sector to be announced soon: Piyush Goyal

There is no need to extend waiver on import duty of cotton after September, says minister.

The government is preparing a scheme for the apparels segment of the textile sector as a production-linked incentive scheme (PLI) for manmade fabrics and technical garments continues, said commerce and industry and textile minister Piyush Goyal on Saturday,

“I am keen to support the apparel manufacturing sector and we are considering to come out with another PLI scheme. The dialogue is going on between textiles, the DPIIT and NITI Aayog, and in consultation with industry participants, we will be shortly devising a scheme which we will put up to Cabinet for its approval,” Goyal said at a textile fair in Coimbatore. He is on a two-day visit to Coimbatore and Tiruppur.

The government last year started the PLI scheme to expand manmade fabrics and technical textile segment’s value chain to help India regain its dominant status in global textiles trade. The country’s share in global exports has declined over the years.

The scheme’s outlay was Rs 10,683 crore, and the textiles ministry approved as many as 61 applications from various companies.

The inclusion of more textile categories under the PLI scheme has been a long-standing demand from the industry, prompting the ministry to plan a second edition of the scheme.

Goyal said that since prices are easing, there is no need to extend the waiver on import duty of cotton beyond September. It could be extended by a month at most.

“Cotton textile prices have already started easing and cotton is becoming more affordable. I don’t think there is a need to extend it beyond September. If at all required, we may extend it by a month or so,” said Goyal.

Amid a sharp rise in cotton and yarn prices, the government in April exempted all customs duty on the import of cotton till September to lower the price of cotton