Textile PLI Scheme Round 4 opens on November 1; government lowers turnover requirement

The minimum turnover requirement has been reduced from Rs 200 crore to Rs 100 crore under the Part 2 category of the scheme. | ChatGPT generated/Representative Image

The Ministry of Textiles will reopen the application portal for Round 4 of the Production Linked Incentive (PLI) Scheme for Textiles from November 1 to December 31, 2026, according to an official statement on Wednesday, October 28. The fresh application window is aimed at encouraging investment in Man-Made Fibre (MMF) apparel, MMF fabrics and technical textiles. The scheme also seeks to strengthen domestic manufacturing, create jobs and improve India's position in global textile value chains.

To bring more companies under the scheme, the government has also introduced several changes to the eligibility and tenure conditions for Round 4.

1. Reduction in minimum turnover criterion

The minimum turnover requirement has been reduced from Rs 200 crore to Rs 100 crore under the Part 2 category of the scheme, enabling greater participation by MSMEs and mid-sized manufacturing units.

2. Extension of scheme tenure

The scheme tenure has been extended up to Financial Year 2033-34 exclusively for applicants approved under Round 4. The extended tenure is intended to provide these applicants with a longer investment and operational horizon for establishing and scaling up their manufacturing capacities.

3. Migration of existing participant companies of the scheme to Round 4

All existing participant companies of Round 1, 2 & 3, in any part of the Scheme, that have not claimed or received any incentive so far, are also eligible to migrate under Round 4, subject to withdrawal of their existing applications under Round 1, 2 and 3, as applicable.

The online portal for applications under Round 4 of the Textile PLI Scheme will remain open from November 1 to December 31, 2026. Eligible companies can submit their applications during this period in line with the applicable scheme guidelines.

Textile PLI Scheme Round-3

In June, the Centre approved a total of 96 companies under the third round of the PLI Scheme for Textiles, with the aim of boosting domestic manufacturing, attracting investments and generating employment in the sector.

According to the Ministry of Textiles, 22 new applicants have recently been approved under Round-3 of the scheme. These companies are expected to bring in fresh investments worth Rs 2,339.14 crore and generate an estimated turnover of Rs 15,561.34 crore from notified textile products. The projects are also projected to create around 36,217 employment opportunities across the textile value chain.

Total committed investment crosses Rs 12,800 crore

With the latest approvals, the total number of companies selected under Round-3 has reached 96. Collectively, these companies have committed investments of Rs 12,822.67 crore and are expected to generate a cumulative turnover of Rs 58,294.18 crore.

The Ministry of Textiles, in its official release, said, "The Government has approved 22 new applicants under Round 3 of the Production Linked Incentive (PLI) Scheme for Textiles. The newly approved companies are expected to bring in a total investment of Rs 2,339.14 crore, generate a projected turnover of Rs 15,561.34 crore in notified products, and create 36,217 employment opportunities across the textile value chain. A total of 96 companies have been selected under Round-3 of the scheme with a total committed investment of Rs 12,822.67 crore and a projected turnover of Rs 58,294.18 crore." Read More