New Delhi, Sep 8 (PTI) Approval of the production-linked incentive (PLI) scheme for MMF (man-made fibre) and technical textiles industries will help attract fresh investments, boost cost-competitiveness and build manufacturing scale in the country, according to industry and experts.

Saurabh Kanchan, partner at Deloitte India, said this scheme will enable the textile sector to become globally competitive, attract large investments, and boost employment generation as well as exports.

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"It would now be interesting to watch out for industry participation in view of the investment thresholds for a labour-intensive sector. Also, the details around the product coverage, percentage of incentive, sales group targets and other related aspects awaited," he said.

Arvind Sharma, partner at Shardul Amarchand Mangaldas & Co, said that with the approval of this scheme, the textile sector will be able to participate in global opportunities and gain presence in the global textile trade.

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"Considering the fact that states like Gujarat, UP, Maharashtra, Tamil Nadu, Punjab, AP, Telangana, Odisha, etc., are extensively engaged in the textile and exports sector, such states will particularly be benefitted by the PLI scheme," he said.

The Cabinet on Wednesday approved the production-linked incentive (PLI) scheme worth Rs 10,683 crore for the textiles sector.

Sharing a similar view, PHDCCI President Sanjay Aggarwal said the products focused on the incentive scheme will drive the textile sector in the global market, and the incentives provided in the scheme will push the growth of the high-value MMF segment.

It will complement the efforts of the cotton and other natural fibre-based textiles industry in generating new opportunities for employment and trade, he added.

"The scheme will result in new investments of massive proportions, expand manufacturing capacities, multifold exports and would help to regain its historical position in the global textiles sector," Aggarwal said.

CII Director-General Chandrajit Banerjee said the scheme will attract fresh investments, boost cost-competitiveness and help build manufacturing scale.

It will also create huge employment opportunities in the sector by providing a level-playing field to the industry vis-à-vis competing nations, he added.

Assocham said the move will be a booster push for the textile industry – not only for committing new investment in the sector but also scaling up the existing capabilities for enhanced output, rightly estimated by the government, at Rs 3 lakh crore over the next five years.

Pavethra Ponniah, senior vice-president and co-group head (corporate sector ratings) at ICRA Ltd, said the scheme will help bridge gaps in India's textile ecosystem, aligning domestic production to the global demand for MMF and technical textiles.

"Globally, MMF accounts for the bulk of the apparel demand, while the Indian supply-chain is skewed towards cotton apparel, with cotton apparel accounting for 55 per cent of India's cotton apparel exports," Ponniah said. HRS hrs

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)