loader2
Login Open ICICI 3-in-1 Account

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

Textile PLI 2.0 focuses on scaling up man-made fibre and technical textile segments

ICICIdirect Research 21 Nov 2025 DISCLAIMER

PLI Scheme outlay: Government of India has approved Production Linked Incentive (PLI) with budgetary outlay of Rs10,630cr (available for a period of 5 yrs – form FY26-FY30).
Scheme structure: The scheme is structured in the two parts Part 1) Investment of Rs150cr or more in investments of plant, machinery, equipment and civil works (excluding land and buildings). Part 2) Smaller investments of Rs0.5-1.5bn in plant, machinery, equipment and civil works.
Potential benefit of scheme for India: Scheme largely focuses on scale-up and strengthening global competitiveness in segments such as man-made fibre (MMF), MMF fabrics and technical textile products in India.
Opportunity for Indian textile players: India’s technical textile exports stood at USD 3bn (1% of global technical textile market) while man-made fibre (MMF) exports stood at USD2.5bn (3% of the global man-made fibre market). This provides immense opportunity for domestic textile companies to scale operation in these high margin segments.
Incentives to get incrementally added to profitability: The companies will receive incentives in the form of 7-15% of incremental revenues from investment made through PLI scheme.
Key beneficiaries of PLI Scheme – Gokaldas Exports, Pearl Global Industries, Sangam India, Arvind and Aditya Birla Fashion & Retail are some of the listed entities who are the selected applicants under the PLI scheme.
Near term trigger: India signing of trade deal with US will be near term trigger for the stock, which is expected to announced by end of Q3FY26.

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere