India’s efforts to re-gain its prestige with Production Linked Incentive (PLI) Schemes

Ranking sixth in the world’s top exporter, India has huge potential in utilizing its large labour pool and domestic market. The scheme proposed on Man-Made Fiber (MMF) apparel and technical textiles constitutes forty product categories and ten technical textile segments. India witnessed a decline in its share in global exports of textile and apparel from 4.84 percent in 2015 to 4.34 percent in 2018 at a CAGR of (-)1.14 percent. While the sector’s growth performance had deteriorated even before Covid, the pandemic induced subdued domestic demand coupled with declining exports because of the lockdowns have had a double blow for the manufacturers. To boost local manufacturing and exports. ICRIER stated, “India’s exports are becoming import-oriented, as the foreign content in exports increased sharply from 15.9 percent in 2003-04 to 27.2 percent in 2013-14. In the textile sector, the study estimates that the foreign value-added share rose from 13.03 percent in 2003-04 to 19.40 percent in 2013-14.”