From Looms to Lego: PLI Expansion Promises Manufacturing Boom and 2 Lakh+ Jobs

Image Source: DICS

In a historic push to power India's manufacturing boom, the government has announced a significant ramp-up of the Production Linked Incentive (PLI) Scheme, which now encompasses textiles and toys. This move is set to shed light on over 200,000 new employment opportunities, propelling India as the world's preferred manufacturing hub.

Key Highlights

PLI Spreads to New Sectors

The Cabinet approved launching the PLI Scheme in two highly labor-intensive sectors—textiles and toys—under its "Aatmanirbhar Bharat" dream.

Massive Investment & Job Boom

The government anticipates the creation of over 2 lakh direct and indirect opportunities with this expansion, driven by greenfield and brownfield projects in apparel, home textiles, and the local toy industry.

Financial Incentives Unleashed

Textiles: Incentive payments are tied to 25% year-over-year incremental turnover and investment levels of ₹100–₹300 crore.
Toys: Over ₹3,500 crore is being invested to give a push to indigenous production and raise exports.

Exports & Import Substitution

The reductions are also expected to reduce toy imports—already reduced by 70% since 2019—and draw new investments of more than ₹7,300 crore in the textile sector, making India more competitive globally.

Faster Disbursement, Global Integration

Policy reforms will facilitate early disbursals and enhance eligibility, and encouragement of tech transfer will render both industries innovation centers.

Empowering MSMEs
The strategy targets small- and medium-sized enterprises, unlocking new opportunities for entrepreneurship and inclusive economic growth. The expansion now will not only boost exports and domestic production, but also mobilize India's entrepreneurs and workers, especially in rural and semi-urban regions," the officials said.

Source: Business Standard, India Briefing, Economic Times