PLI scheme: Government eyes 2nd edition for textile industry in garments & apparel segment; KPR Mills, Vardhman Textiles, others gain
Along with man-made fibers and technical textiles, the government also wants to promote khadi through this scheme, where the budget provision of Rs 4000 crore is likely to be allocated, said the sources.
The government is mulling to bring a second edition of a PLI (Production Incentives Linked) scheme for the textile industry, mainly in the garment and apparel segment, sources told Zee Business.
Along with man-made fibers and technical textiles, the government also wants to promote khadi through this scheme, where the budget provision of Rs 4000 crore is likely to be allocated, said the sources.
The Ministry of Textiles held a meeting with the industry stakeholders on May 17, 2022 and aims to complete the approval and cabinet process soon by August-September and mostly by October the scheme will be implemented.
The new PLI scheme aims to make India a garment hub. In this regard, a LoA (Letter of Authorisation) has been sent to 64 companies under the previous PLI scheme and industry to complete investment process in next 2 years.
The market analyst and TradeSwift Director Sandeep Jain termed the Zee Business Exclusive on the new PLI scheme as positive news. He said that the government gives special importance to this sector, as textile has been the biggest employer in India.
Being bullish on the overall sector, Jain advised to Buy textile stocks on dips whenever possible.
Textile stocks such as KPR Mills, Vardhman Textiles, Gokaldas Exports, Siyaram Silks surged up to 4 per cent higher intraday on the exchanges on Tuesday.
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