Textile PLI Incentive Calculator
Calculate Your Incentives
How It Works
The PLI scheme offers incentives based on incremental sales over a five-year period. The rate varies by segment:
Note: At least 50% of production must be exported for apparel, synthetic fiber, and technical textiles to qualify for full incentive rate. Cotton spinning and weaving count domestic sales.
Your Estimated Incentives
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Tip: The incentives are paid quarterly based on verified production and export data. First payment typically arrives within 60 days after quarter-end.
India’s new textile policy, officially called the Production Linked Incentive (PLI) Scheme for Textiles, rolled out in April 2024 and fully active by early 2025, isn’t just another government announcement. It’s a strategic overhaul designed to turn India into a global textile and apparel manufacturing hub. If you’re running a textile factory, a small spinner, a weaver’s cooperative, or even a startup trying to break into fabric exports, this policy changes everything you thought about costs, competition, and growth.
What Exactly Is the New Textile Policy?
The core of India’s new textile policy is a ₹10,683 crore ($1.3 billion) incentive program under the PLI framework. It targets five key segments: synthetic fiber and technical textiles, apparel and made-ups, cotton spinning, cotton weaving, and technical textiles. Unlike older subsidies that just gave cash for machines, this one rewards you based on how much you actually produce and export. The more you grow, the more you get.
For example, if your unit produces 100,000 meters of technical fabric and exports 70% of it, you get a cash incentive of 15% of your incremental sales over the next five years. That’s not a one-time grant - it compounds. Companies that hit targets in Year 1 get more support in Year 2. It’s designed to lock in long-term investment.
How It’s Different from Old Schemes
Before this policy, textile manufacturers relied on things like the Mega Textile Park scheme or export incentives that were often delayed, bureaucratic, or limited to big players. Many small units couldn’t even apply because they lacked the paperwork or capital to meet eligibility thresholds.
The new policy fixes that. It’s simpler, faster, and more inclusive. Eligibility is based on production volume, not company size. A family-run power loom unit in Surat can qualify just as easily as a factory in Tamil Nadu with 500 machines - as long as they meet the minimum output targets. Also, the incentives are paid directly into bank accounts via digital platforms, cutting out middlemen and delays.
The PM MITRA Parks: The Backbone of the Strategy
Alongside the PLI scheme, the government launched seven PM MITRA (Prime Minister’s Mega Integrated Textile Regions and Apparel) parks across the country. These aren’t just industrial zones - they’re full ecosystems. Each park includes:
- Modern infrastructure like high-speed power and water recycling systems
- Common facilities for dyeing, printing, and testing
- Training centers for skilled labor
- Logistics hubs connected to ports and highways
- On-site design studios and R&D labs
These parks are located in Madhya Pradesh, Telangana, Uttar Pradesh, Andhra Pradesh, Karnataka, Gujarat, and Maharashtra. By 2026, all seven are expected to be fully operational. If you’re setting up a new unit, being near one of these parks isn’t just convenient - it’s a competitive advantage. You get access to shared technology, lower utility costs, and faster approvals.
Who Benefits the Most?
The policy doesn’t just help big exporters. Here’s who sees real gains:
- Small and medium textile units: They now have access to low-interest loans through SIDBI and can apply for PLI incentives without needing a corporate structure.
- Technical textile manufacturers: This segment - which includes medical fabrics, geotextiles, and bulletproof materials - gets a 15% incentive on exports, up from 10% before. Demand from defense, agriculture, and healthcare sectors is booming.
- Women-led enterprises: 30% of PLI benefits are reserved for units with at least 50% female ownership or workforce. Many cooperatives in Rajasthan and Odisha have already applied.
- Exporters targeting the EU and US: With the EU’s Carbon Border Tax coming into full effect in 2026, Indian mills using renewable energy in PM MITRA parks get extra credit for sustainability.
What You Need to Do to Qualify
If you’re serious about tapping into this policy, here’s what you need to do:
- Register on the Textile PLI Portal (government-run, no third-party agents)
- Submit your production data monthly - no fancy software needed, basic Excel sheets accepted
- Ensure your unit complies with environmental norms (wastewater treatment, zero discharge)
- Apply for one of the five eligible categories - don’t try to cover all
- Link your bank account with UPI or NEFT for direct incentive transfers
There’s no application deadline - it’s open year-round. But incentives are calculated on a rolling five-year basis. So if you start in 2026, your first payout comes in 2027. The earlier you begin, the more you earn.
Real-World Impact: Numbers That Matter
Since the policy launched:
- Textile exports jumped 22% in 2025, hitting $41.7 billion - the highest ever
- Over 1,200 new units registered under PLI, adding 180,000 jobs
- Technical textile production increased by 38% year-over-year
- Over 60% of PLI beneficiaries are from Tier-2 and Tier-3 cities
- Foreign investment in Indian textile manufacturing rose 45% in 2025, led by firms from Vietnam, South Korea, and Germany
These aren’t projections - they’re official data from the Ministry of Textiles. The policy is working.
Common Mistakes to Avoid
Many small manufacturers misunderstand the policy. Here are the top three pitfalls:
- Thinking it’s just for big factories: The minimum investment is just ₹5 crore (about $60,000) for spinning units - far below what most assume.
- Delaying registration: The first 200 applicants in each category get priority access to PM MITRA park slots. Waiting means missing out on land and infrastructure.
- Ignoring sustainability: Units that don’t install solar panels or wastewater treatment lose out on bonus points. The policy now ties incentives to green metrics.
What’s Next? The Road to 2030
The government’s goal is clear: make India the world’s second-largest textile exporter by 2030, behind only China. To get there, they’re already planning Phase 2 of the PLI scheme, which will add incentives for:
- Recycled fiber production
- Smart textiles with embedded sensors
- AI-driven quality control systems
By 2030, the policy aims to create 10 million jobs in textiles and raise the sector’s contribution to India’s GDP from 2.3% to 4.5%. That’s not just growth - it’s transformation.
Is the new textile policy only for large companies?
No. The policy is designed to include small and medium enterprises. Units with as little as ₹5 crore in investment can qualify. Even power loom clusters and family-run weaving units can apply if they meet production targets and register on the official portal.
How long does it take to get PLI incentives after applying?
Incentives are paid quarterly based on verified production and export data. The first payment typically arrives within 60 days after the end of each quarter, provided all documents are submitted correctly. There are no annual lump-sum payouts - it’s continuous and performance-based.
Do I need to export to qualify for the incentive?
Not always. For cotton spinning and weaving, domestic sales count. But for apparel, technical textiles, and synthetic fiber segments, at least 50% of production must be exported to qualify for the full incentive rate. The policy encourages export growth but doesn’t ignore the domestic market.
Can I apply if my unit is in a rural area?
Yes. In fact, the policy specifically targets rural and semi-urban regions. PM MITRA parks are being built near existing textile clusters in states like Madhya Pradesh and Odisha. Rural units get priority in land allocation and training support.
What happens if I don’t meet my production target one year?
You don’t lose eligibility. The PLI scheme uses a rolling five-year window. If you fall short in Year 1, you can make up for it in Years 2-5. Your incentive is calculated on cumulative incremental sales over the entire period, not annual targets. Consistency matters more than one-off performance.