Government likely to float PLI -2 for textiles
News: As per media reports, the Indian government is likely to float second Productivity Linked Investment scheme (PLI-2) so that other segments of the textile sector can also be promoted.
Views: In FY22 the textiles exports stood at USD 42 billion as against USD 31 billion in FY21. The Indian Government is targeting to increase Textiles exports to USD 100 billion by 2030 and has signed trade agreements with UAE and Australia and is further looking to enter into similar agreements with the European Union, Canada and UK. Recently, the government announced the selection of 61 investment proposals under PLI ( specifically for man made and technical textile companies) with a total investment of ₹19,077 crore and projected turnover of Rs 184917 crore over a period of 5 years. Extension of PLI to other textile segments like cotton would enable India to drive its exports further and benefit from the China+1 strategy of global retailers who are looking to diversify their sourcing supply chains.