Did the PLI Reap what it Sowed? An Intermediate Case Study of the Textile Sector

By Yugank Mishra

October 30, 2025
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Introduction

As India grapples with leveraging its manufacturing prowess to fuel its growth story with challenges emerging on the fronts of international trade, a closing demographic window, concerns of premature deindustrialization, etc., an analysis of what has been called as her de facto Industrial Policy—Production Linked Incentives, announced in 2020—becomes imperative (Dhar, 2024). Launched to meet a host of objectives, such as reducing import dependencies and promotion of exports, anchoring of global supply chain champions and augment domestic value addition, create employment and scale productive capacities, the PLI scheme covers 14 strategic manufacturing sectors, namely (PMO, 2021; Sitharaman, 2021; PIB, 2024):

  1. Large Scale Electronics Manufacturing (LSEM)
  2. Critical Key Starting Materials (KSMs)/ Drug Intermediaries (Dis) and Active Pharmaceutical Ingredients (APIs)
  3. Manufacturing of Medical Devices
  4. Automobiles and Auto Components
  5. Pharmaceutical Drugs
  6. Specialty Steel
  7. Telecom and Networking Products
  8. IT Hardware
  9. White Goods (Air Conditioners and LEDs)
  10. Food Products
  11. Textile Products: MMF Segment & Technical Textiles
  12. High Efficiency Solar PV Modules
  13. Advanced Chemistry Cell Batteries
  14. Drone and its Components

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Endnotes

[1] As per the HS 2 Digit Codes which are extrapolated from the reserved commodities under the PLI scheme for textiles (Ministry of Textiles, 2021).

[2] This section has been condensed from (Ministry of Textiles, 2021).

[3] Some experts have also raised questions on whether this definition of value addition is an adequate one based on net sales. See, for example, (Raju & Sharma, 2024).

[4] The case of Tamil Nadu for which we have more exact figures allows us further precision in our argument. Two points to be noted are that one can, with reason, assume that per project 1 manufacturing unit will be established since the total applications approved for Tamil Nadu are 10 and the total manufacturing units established under PLI in the state are 11. Then, the total person engaged in these 11 units are at 5,295 currently (which might increase), which, again, supersedes the national average of per factory person engaged. (Ministry of Textiles, August 2025 (Date Accessed) ) (Ministry of Commerce and Industry; DPIIT, July, 2025).

[5] A phenomenon which may be celebrated by those who adhere to a laissez faire ideology (Goswami, Medvedev, & Olafsen, 2019).

Yugank Mishra

Yugank holds an M.Phil. in Modern Indian History from Dr B.R. Ambedkar University, Delhi, specialising in 19th-century subaltern histories. He has worked in research and programs-centric roles with some of the leading stakeholders in the social development sector such as the Indian Council for Social Sciences Research, Bureau of Police Research and Development (Ministry of Home Affairs, GoI), National Human Rights Council, Azim Premji Foundation, Asia Floor Wage Alliance, Ajeevika Bureau, amongst others. He has experience in organisational development and leading partnerships, and in his latest stint at the Society for Labour and Development, he led the first iteration of their novel labour rights and support fellowship across India.
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