The Ministry of Textiles will reopen the application portal of the Production Linked Incentive (PLI) Scheme for Textiles from 1 November 2026, inviting fresh applications under Round 4 through 31 December 2026. The move aims to accelerate domestic manufacturing of Man-Made Fibre (MMF) Apparel, MMF Fabrics, and Technical Textiles, while strengthening India's foothold in global textile value chains, according to an official statement issued on Wednesday, 28 October 2026.

Key Changes Under Round 4

In a significant policy shift, the minimum turnover threshold for companies under the Part 2 category has been halved — from ₹200 crore to ₹100 crore. This reduction is designed to bring a larger pool of MSMEs and mid-sized manufacturers into the scheme, addressing a persistent criticism that earlier rounds were skewed toward large corporates. Separately, the scheme's tenure has been extended to Financial Year 2033–34, but exclusively for applicants approved under Round 4, giving them a longer runway to establish and scale up production capacity.

Migration Window for Earlier Rounds

Companies that were approved under Rounds 1, 2, or 3 but have not yet claimed or received any incentive are eligible to migrate to Round 4. The condition: they must formally withdraw their existing applications under the earlier rounds before applying afresh. This provision is intended to consolidate participation and reduce dormant approvals that have historically diluted the scheme's impact data.

Background: Round 3 Performance

The government approved 52 new applications under Round 3 in April 2026, targeting a projected investment of ₹6,708 crore. Of these, 5 were for MMF apparel, 19 for MMF fabrics, 18 for technical textiles, and 10 for the multiple segment. The approved Round 3 proposals are expected to generate a turnover of ₹21,186 crore, according to the ministry. This comes amid a broader push to raise India's share in the global technical textiles market, where demand is being driven by infrastructure, healthcare, and defence applications.

Why This Matters

India's textile sector is the country's second-largest employer after agriculture, and the PLI scheme is widely regarded as a cornerstone of the Centre's effort to reposition the industry up the value chain — away from commodity cotton yarn and toward high-margin MMF and technical segments where China and South Korea currently dominate. Notably, the extended tenure to FY2034 signals a deliberate long-term commitment, countering industry concerns that previous scheme horizons were too short for greenfield investments to break even. Eligible companies are encouraged to apply at https://pli.texmin.gov.in before the portal closes on 31 December 2026.