June 2026 | Industry | Textiles & Manufacturing
India's textile sector just hit a significant milestone. The government has approved 96 companies under Round-III of the Production Linked Incentive (PLI) Scheme for Textiles, with a total committed investment of ₹12,822.67 crore — signalling strong and growing industry confidence in the programe
What Happened?
The Ministry of Textiles recently cleared 22 new applicants in the latest tranche of Round-III approvals. This pushes the cumulative Round-III count to 96 firms.
These 22 companies alone are expected to:
- Invest ₹2,339 crore in manufacturing
- Generate ₹15,561 crore in turnover from notified products
- Create 36,217 jobs across the textile value chain
At the Round-III level overall, the 96 approved firms collectively project a turnover of ₹58,294 crore.
What Sectors Are Covered?
The approved companies operate across three key focus segments:
- Man-Made Fibre (MMF) Apparel
- MMF Fabrics
- Technical Textiles
These are areas where India has historically underperformed despite being one of the world's largest textile producers. The PLI scheme is a direct attempt to fix that gap.
How Did We Get Here?
The scheme was launched in September 2021 with an outlay of ₹10,683 crore. Rounds I and II brought in 74 companies. Round-III has been growing in tranches — 17 firms were added in November 2024, 52 more in April 2026, and now 22 additional firms in June 2026.
A major course correction came in October 2025, when the government overhauled the scheme — expanding eligible products, cutting the minimum investment threshold by half, removing the requirement to incorporate a new entity, and easing turnover criteria. The move was widely seen as an effort to bring mid-sized manufacturers into the fold.
Why It Matters
This isn't just about numbers. The PLI scheme is India's bet on building globally competitive, large-scale manufacturing capacity in value-added textiles — a segment that commands higher margins and stronger export demand worldwide.
With ₹12,823 crore in committed investments and a projected turnover approaching ₹58,000 crore, Round-III alone has the potential to reshape India's position in global textile supply chains.
For manufacturers, the message is clear: the window is open and the terms have improved. Now is the time to get in.
Source: Ministry of Textiles | Economic Times | Business Standard