Textile PLI Scheme Extended: Application Window Open Until March 31, 2026 with Reduced Investment Threshold

Government of India extends application window for Textile Production Linked Incentive Scheme to March 31, 2026, providing expanded opportunity for manufacturers to participate in man-made fiber and technical textiles value chains. Effective August 1, 2025, minimum investment requirement has been reduced by 50% - from ₹3 billion to ₹1.5 billion under Part-1 and from ₹1 billion to ₹500 million under Part-2, significantly lowering entry barriers and improving investment feasibility. As of October 2025, 74 companies have received approval under Textile PLI Scheme with committed investments of ₹287.11 billion expected to generate estimated turnover of ₹2.16 trillion, create employment for over 259,000 people, and boost India's manufacturing capacity in MMF and technical textiles. From FY 2025-26 onwards, new applicants required to demonstrate minimum 10% year-on-year incremental turnover to continue receiving incentives from Year 2. These revisions enhance industry participation and align scheme with India's broader objective of strengthening global textile manufacturing competitiveness, reducing import dependence on synthetic fibers, and establishing India as major player in technical textiles for automotive, medical, agriculture and infrastructure applications.