India

Business: Government is planning to start second PLI scheme for textile sector

Union Commerce and Industry Minister Piyush Goyal gave information in a recent program in Coimbatore.

A good news is coming for the textile business. After the good response to the first Production-Linked Incentive (PLI) scheme, the government is planning to launch the second PLI scheme for the textile sector. Union Commerce and Industry Minister Piyush Goyal gave this information in a recent program in Coimbatore.

Regarding this, Goyal said, “We are keen to support the apparel manufacturing sector. Talks are on between the Ministry of Textiles, DPIIT and NITI Aayog. After consulting the industry, we will prepare a scheme soon. After that. We will move the proposal for cabinet approval.” Piyush Goyal further said, given the recent fall in cotton and yarn prices, the government may not need to allow duty-free import of fiber once the new crop hits the market.

The government has already selected 61 companies including Shahi Exports, Arvind Mills, Gokaldas Exports under its first PLI scheme for man-made fiber and technical textile products. These companies will be given an incentive of Rs 6,013 crore. This is 56% of the initial Rs 10,683 crore earmarked by the government for this scheme.

According to sources, the government will probably use the remaining amount to start another PLI scheme, instead of spending it elsewhere. The Union Minister exuded confidence that India and Canada, which are engaged in negotiations for a Free Trade Agreement (FTA), will settle an early harvest deal by the end of 2022. Negotiations on FTA are going on. Two trade deals have already been signed with UAE and Australia.

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