Politics · India · 6 hrs ago
India extends textiles incentive scheme and lowers turnover threshold
India's Textiles Ministry has extended its production incentive scheme for textiles to the 2033-34 financial year for companies approved under Round 4.
The scheme was originally due to end in 2029-30.
For Part 2 applicants, the ministry cut the minimum turnover requirement from ₹200 crore to ₹100 crore; the category has a minimum investment threshold of ₹50 crore.
The change is intended to bring more small and mid-sized manufacturers into the scheme and encourage investment.
The scheme supports production of man-made fibre clothing and fabrics, as well as technical textiles.
The application portal will accept Round 4 applications from November 1 to December 31.
Companies from earlier rounds that have not received or claimed incentives may also move to Round 4 if they withdraw their existing applications.
India has extended the textiles Production Linked Incentive scheme until 2033-34 for companies approved under Round 4.
The minimum turnover requirement for Part 2 applicants has been cut from ₹200 crore to ₹100 crore.
The change is intended to widen participation by MSMEs and mid-sized manufacturers.
The application portal will reopen from November 1 to December 31 for Round 4 applications.
The scheme supports manufacturing of man-made fibre apparel, man-made fibre fabrics and technical textiles.
- Who
- India's Textiles Ministry and companies applying under Round 4 of the scheme.
- What
- The government extended the scheme until 2033-34 for approved Round 4 applicants and lowered Part 2's minimum turnover requirement to ₹100 crore.
- When
- Announced on Wednesday, October 28, 2026. Applications will be accepted from November 1 to December 31.
- Where
- India.
- Why
- To enable wider participation, including by MSMEs, and attract investment in textile manufacturing.
This story does not have two clearly opposing sides.
The scheme was originally set to run until this financial year.
The government announced the extension and lowered the Part 2 minimum turnover requirement.
The ministry will reopen the application portal for Round 4 applications.
- Extended tenure
- Until financial year 2033-34
- Part 2 minimum turnover
- ₹100 crore, reduced from ₹200 crore
- Part 2 minimum investment
- ₹50 crore
- Application window
- November 1 to December 31
- Eligible products
- Man-made fibre apparel, man-made fibre fabrics and technical textiles
2 sources
What people are saying
The extended tenure is intended to provide these applicants with a longer investment and operational horizon for establishing and scaling up their manufacturing capacities