Union Textiles Minister Giriraj Singh on Thursday, June 11, 2026, announced that 22 new companies have been approved under the third phase of the Production Linked Incentive (PLI) scheme for textiles, promising investments exceeding ₹2,339 crore and the creation of more than 36,000 jobs.

Context

Posting on X, the minister stated: 'PLI योजना के तीसरे चरण में 22 नई कंपनियों को स्वीकृति मिली है' ('22 new companies have been approved in the third phase of the PLI scheme'), adding that this would channel investments of over ₹2,339 crore and generate more than 36,000 employment opportunities. He framed the approvals as a step toward realising the goals of Atmanirbhar Bharat (Self-Reliant India) and Viksit Bharat (Developed India) under the leadership of Prime Minister Narendra Modi.

Policy Backdrop

The Union Cabinet approved the PLI scheme specifically for the textiles sector in September 2021, with a total outlay of ₹10,683 crore spread over five years. The scheme was designed to offer incentives on incremental sales to manufacturers of man-made fibre apparel, man-made fibre fabrics, and technical textiles — segments where India has historically lagged behind competitors such as China, Vietnam, and Bangladesh.

The broader PLI architecture, introduced in 2020, now spans 14 sectors and sits at the heart of the government's Atmanirbhar Bharat strategy to reduce import dependence and raise domestic value addition. Textiles has been accorded priority status given its labour-intensive character and its potential to lift export earnings.

Stakeholders and Impact

The textile manufacturing sector stands to benefit most directly, with the newly approved firms expected to commission fresh production capacity and absorb workers across spinning, weaving, and garmenting operations. Given that textiles is one of India's largest employers after agriculture, the projected 36,000-plus jobs carry particular significance for states with established textile clusters.

For textile sector workers, especially in states such as Gujarat, Maharashtra, Tamil Nadu, and Telangana, the fresh investment pipeline could translate into formal employment and improved wages if the approved companies meet their committed production milestones. Industry bodies have long sought faster approvals and disbursements to stay competitive in global markets.

What's Next

The Ministry of Textiles will be expected to conduct quarterly reviews to track the physical and financial progress of the 22 newly approved companies. Actual disbursement of PLI incentives is contingent on companies meeting incremental sales targets, making implementation monitoring the critical near-term test for the scheme's third phase.

With global apparel and technical textile supply chains continuing to diversify away from single-source dependence, India's ability to convert approved investment into operational capacity swiftly will determine whether the ₹10,683 crore textiles PLI outlay delivers its intended export and employment dividends.