PLI Scheme for Textiles 2026: New Investment Opportunities for Textile Manufacturers

The PLI Scheme for Textiles is open for fresh applications. Round 4 began on 1 November 2026 and the online portal accepts proposals until 31 December 2026 for man-made fibre (MMF) apparel, MMF fabrics and technical textiles. In its 28 October release, the Ministry of Textiles cut the minimum turnover for Part 2 from ₹200 crore to ₹100 crore and extended support to FY 2033-34 for units approved in this round. A manufacturer planning a new textile plant can register on the PLI portal now, and earlier-round participants who have claimed nothing can migrate.

Updated 5 November 2026, after the Round 4 portal opened on 1 November. The next date to track is 31 December 2026, when the window closes.

Confirmed so far: Round 4 runs from 1 November to 31 December 2026 on the online portal. Part 2 minimum turnover is ₹100 crore. Round 4 approvals get tenure up to FY 2033-34. Participants of Rounds 1 to 3 who have claimed no incentive can migrate after withdrawing earlier applications. Still awaited: the date of the first Round 4 approvals.

Who can apply under the PLI Scheme for Textiles in Round 4?

The table sets out the entry conditions, with Part 1 and Part 2 split out where they differ.

The ₹150 crore and ₹50 crore floors, the 10% growth rule and the project-unit option come from the ministry's October 2025 amendment, which applies to all later rounds.

What does the PLI Scheme for Textiles pay, and until when?

Money follows production, not the application.

How to apply for the PLI Scheme for Textiles, step by step

1.       Register. Create an account on the portal and verify it with an OTP.

2.       Fill the draft. Enter applicant details, key personnel, target segment, proposed business activity, employment and projected turnover.

3.       Review. Check the draft line by line before submitting it.

4.       Undertaking and fee. Accept the undertaking and pay the application fee shown on the portal.

5.       Documents. Upload the set that matches your type of applicant. Company registration certificate, PAN and GST details are standard. E-sign each upload through Aadhaar OTP and submit.

6.       Review by the agency. The Project Management Agency examines the application, and incentives are released only after pre-disbursal requirements are met.

Where PLI applications for textiles go wrong

•         Counting existing machinery. Only new investment qualifies, and it must sit inside the project unit.

•         Mixing books. The unit needs distinct accounts, because investment and turnover are measured from them.

•         Selling products that do not match. Invoices whose descriptions miss the notified HS codes do not count towards turnover.

•         Migrating in the wrong order. Earlier applications must be withdrawn first, and only participants with no incentive claimed or received qualify.

•         Submitting an error-filled draft. The sample application format warns that details cannot be edited once the draft is submitted.

Migrating from Round 1, 2 or 3 under the PLI Scheme for Textiles

Participants of Rounds 1 to 3, in any part of the scheme, may move to Round 4 if they have not claimed or received any incentive. The gain is the longer tenure to FY 2033-34, which applies only to Round 4 approvals. Applicants should expect to keep the Round 4 documents ready before withdrawing an earlier application, since the release makes withdrawal a condition of migration.

What to prepare now for the PLI Scheme for Textiles

1.       Cost break-up. Separate plant, machinery, equipment and civil works from land and administrative buildings, because only the first group counts towards the ₹150 crore (Part 1) or ₹50 crore (Part 2) minimum.

2.       Structure. Decide between a new company and a separate project unit with its own books under an existing one.

3.       HS code check. Match each planned product to the notified 8-digit HS codes, since eligible turnover depends on GST invoice descriptions.

4.       Turnover plan. Map the first-year turnover (₹100 crore minimum under Part 2) and the 10% yearly growth from year two.

5.       Documents. Keep registration, PAN and GST details in one folder and name the e-sign signatory.

6.       Migration status. If you are an existing participant, note whether any incentive has been claimed or received.

Where to watch: the portal at pli.texmin.gov.in and the Ministry of Textiles feed on the Press Information Bureau site.

Planning a plant? See our textile business ideas, the spinning mill guide and other government schemes for manufacturers.

NPCS has prepared project reports since 1994 for clients in 85 countries, under an ISO 9001:2015 certified research process.

A project report for an MMF or technical textile unit covers plant and machinery, raw materials, manpower, project cost, working capital, profitability, break-even and multi-year cash flow. NPCS publishes one for non woven fabric units. It supports an application and does not guarantee approval.

Frequently asked questions about the PLI Scheme for Textiles

When can I apply under the PLI Scheme for Textiles?

Now. Round 4 accepts new applications from 1 November to 31 December 2026, only through the online portal at pli.texmin.gov.in. The ministry's release does not say when Round 4 approvals will be announced.

Who is eligible for the PLI Scheme for Textiles?

A company, firm or other person willing to invest at least ₹150 crore (Part 1) or ₹50 crore (Part 2) in new plant to make notified MMF apparel, MMF fabrics or technical textiles. Part 2 applicants also need ₹100 crore minimum turnover.

Can an MSME apply under the PLI Scheme for Textiles?

Yes, if the unit meets the Part 2 conditions. The ministry lowered the Part 2 turnover floor to ₹100 crore, but the unit still has to commit ₹50 crore of new plant investment.

Can an existing PLI participant switch to Round 4?

Yes, if no incentive has been claimed or received. Participants of Rounds 1 to 3 can migrate after withdrawing their earlier applications. Only Round 4 approvals get the extension to FY 2033-34.

Which products qualify under the PLI Scheme for Textiles?

MMF apparel, MMF fabrics and notified technical textiles such as geo-textiles, agro-textiles, medical textiles and carbon fibre. Turnover counts only for products whose GST invoice descriptions match the notified 8-digit HS codes.