BS EDIT: PLI for Garments: Will It Deliver?

By Business StandardPublished On Jul 1, 2025

Sector Snapshot

Textiles contribute 2.3% to GDP and are India’s second-largest employer. Most capacity lies in small, labour-intensive MSME clusters

A New PLI Push

A fresh PLI scheme for garments is in the works. But past PLI outcomes raise doubts—especially for low-scale, informal sectors like apparel

Underwhelming Impact

Despite a ₹10,683-crore outlay, the textile PLI launched in 2021 saw slow investment and falling exports in FY24

Competitiveness Gap

India’s garment sector trails Bangladesh and Vietnam due to high input costs, trade red tape, and outdated labour laws

Policy Bottlenecks Remain

Rules like the 2001 DGFT circular and tough quality norms raise compliance costs for small units and slow down trade

Reform First, Incentives Next

For true revival, India needs structural reform—lower duties, faster logistics, and real support for MSMEs—not just subsidies