Anticipation seems to be in the air among manufacturers in the Tiruppur textile hub for reduction in turnover limit for deriving utility of Production Linked Incentive (PLI) scheme of the Central Government for technical textiles in the 2025 Budget
The threshold being high, there is, at present, only one company in Tiruppur among 53 in the country that had registered for PLI benefits. Another company’s application from Tiruppur is under consideration of the Textile Ministry.
The existing scheme envisages a minimum investment criteria of ₹100 crore and a minimum turnover criteria of ₹200 crore for the first part, and a minimum investment criteria of ₹300 crore and a minimum turnover criteria of ₹400 crore for the second.
The industry associations are learnt to have been sounded by the Ministry of its move to reduce the minimum turnover criteria to two-digit slabs.
The 2025-26 Budget is expected to be of immense utility to the players in the unorganised sector as well, Jaiprakash Palanisamy, Tiruppur-based entrepreneur and Start Up India Mentor, said.
From 22 billion US dollars in 2022 to over 40 billion US dollars in 2024, technical textiles have clocked a phenomenal growth.
A large-scale integration of smaller companies in Tiruppur venturing into technical textiles under PLI scheme will also mean their eligibility for availing the utility of support systems of the Ministry for sourcing and trading of products, Mr. Jaiprakash said.
The China Plus One strategy adopted by global players into import-export trade of technical textile products look for scalability in India where 20 percent growth has been envisaged by the Textiles Ministry over the next two years, Mr. Jaiprakash said.
“Over the last two years, we have diversified into man-made fibres and technical textiles to the extent of 10 % of production capacity, against a 30 % target. The 5 % annual growth will be sustained,” T.M. Subramanian, president of Tiruppur Exporters Association, said.
With automated machinery, transition to technical textiles was seamless, Mr. Jaiprakash pointed out, citing the shift of Tiruppur knitwear industries into 90 % PPE kit production at the time of COVID pandemic.
Published – January 11, 2025 09:31 pm IST