PLI Scheme for Textiles 2026: Round 4 Portal Reopens 1 November, Part 2 Turnover Cut to ₹100 Crore

What happened

On 28 October 2026 the Ministry of Textiles announced that the application portal of the Production Linked Incentive (PLI) Scheme for Textiles will reopen for a fourth round (Round 4). As reported by DD News with PIB inputs, the portal (pli.texmin.gov.in) will accept applications from 1 November to 31 December 2026.

Three changes come with the new round:

• The minimum turnover for Part 2 applicants is cut from ₹200 crore to ₹100 crore, so that MSMEs and mid-sized units can take part.
• Companies approved in Round 4 get a scheme tenure extended up to FY 2033-34.
• Companies already in Rounds 1, 2 or 3 that have not claimed or received any incentive can move to Round 4, but must first withdraw their earlier application.

Background

• Approval: The government approved the PLI Scheme for Textiles in September 2021 with a budgetary outlay of ₹10,683 crore. It covers MMF apparel, MMF fabrics and products of technical textiles.
• Notification: The scheme was notified on 24 September 2021; the Ministry's operational guidelines are dated 28 December 2021. Under those guidelines the scheme runs to 31 March 2030, and incentives are paid for five years.
• Two categories: Originally, Part 1 needed a minimum investment of ₹300 crore and turnover of ₹600 crore; Part 2 needed ₹100 crore investment and ₹200 crore turnover in the first performance year.
• 2025 amendments: In October 2025 the Ministry notified amendments that halved minimum investment for new applicants from 1 August 2025 (Part 1: ₹300 crore to ₹150 crore; Part 2: ₹100 crore to ₹50 crore), cut the required incremental turnover from 25% to 10%, added 17 HSN codes (8 for MMF apparel, 9 for MMF fabrics) and let firms set up project units within existing companies instead of forming new ones.
• Progress: The portal was reopened in August 2025 and kept open till 31 March 2026. By June 2026, 96 companies had been selected in Round 3 with committed investment of ₹12,822.67 crore. In a Lok Sabha reply in July 2026, the Ministry said 170 companies had been approved in all.

Key details

Segments covered: MMF apparel, MMF fabrics and technical textiles.

Why it matters

• Wider entry: Halving the Part 2 turnover bar lets smaller and mid-sized firms qualify, which matches the Ministry's stated aim of more MSME participation. MSMEs were already 65 of 96 Round 3 applicants (about 68%) after the 2025 changes.
• Longer horizon: A tenure up to FY 2033-34 gives Round 4 firms time to build plants and reach targets before incentives are paid.
• Second chance for stalled firms: The migration option helps approved firms that have not yet earned any incentive to shift to the easier Round 4 terms.
• Focus on MMF and technical textiles: According to the DD News report of the Ministry's release, the scheme aims to boost domestic manufacturing, attract investment, generate jobs and strengthen India's place in global textile value chains. Industry body CITI's chairman called the move a confidence booster (Business Standard).

Issues and criticism

• Repeated easing: This is the latest in a series of relaxations (2025 investment cuts, extended deadlines, now a lower turnover bar). Each easing was made to widen participation, which raises the question of whether the original thresholds suited most firms in these segments.
• Slow ground results: The Ministry's own July 2026 Lok Sabha reply shows that of 24 approved companies in Maharashtra, only three had reported any actual investment by 31 March 2026 (together ₹167.51 crore), and none showed an incentive released.
• Fairness to early entrants: Only firms that have not claimed any incentive may migrate. Firms that have already earned incentives stay on older terms.
• Longer commitments: Extending tenure to FY 2033-34 for Round 4 firms takes the scheme well past its original end date of 31 March 2030.

Way forward

• Hand-hold MSMEs through the application process so that the lower threshold turns into actual applications.
• Track investment, turnover and jobs firm by firm and publish progress regularly.
• Link the scheme with fibre supply, skilling and export-promotion efforts so that new capacity finds buyers.
• Keep rules stable after Round 4 so investors can plan with confidence.

Prelims pointers

• PLI Scheme for Textiles is run by the Ministry of Textiles; outlay ₹10,683 crore.
• Segments: MMF apparel, MMF fabrics, technical textiles.
• Round 4 window: 1 November – 31 December 2026, on pli.texmin.gov.in.
• Part 2 minimum turnover cut from ₹200 crore to ₹100 crore.
• Tenure for Round 4 approvals: up to FY 2033-34.
• October 2025 amendment: minimum investment Part 1 ₹150 crore, Part 2 ₹50 crore; incremental turnover norm 10%.
• Companies approved so far: 170 (July 2026); Round 3: 96 companies.

One-liners for SSC, Banking and Railways

• The PLI Scheme for Textiles portal reopens on 1 November 2026.
• The scheme covers man-made fibre (MMF) products and technical textiles.
• Outlay of the PLI Scheme for Textiles: ₹10,683 crore.
• New minimum turnover for Part 2: ₹100 crore.
• Round 4 approvals get tenure up to FY 2033-34.

Practise more scheme facts in our weekly current affairs quiz and on the SSC CGL page.

Mains practice question

Q. "The repeated easing of the PLI Scheme for Textiles shows both its promise and its design limits." Examine with reference to the 2025 and 2026 changes. (250 words)

Points to cover:

1. Aim and design: ₹10,683 crore outlay, MMF and technical textiles focus, Part 1 and Part 2 thresholds.
2. Changes: 2025 investment cut and 10% incremental turnover norm; 2026 Part 2 turnover cut to ₹100 crore, tenure to FY 2033-34, migration option.
3. Outcomes and gaps: 170 approvals, MSME share in Round 3, slow investment reporting.
4. Way forward: MSME support, monitoring, stable rules, link to exports and skilling.