Tiruppur, a key textile hub in India, is pushing for a reduction in the turnover limit required for eligibility under the Production Linked Incentive (PLI) scheme in the upcoming 2025 Union Budget. The city’s small and medium enterprises (SMEs), which are crucial to its textile economy, believe that the current threshold is too high and excludes many businesses from accessing government incentives.
Why the Demand for a Reduced Turnover Limit?
The PLI scheme aims to boost local manufacturing and reduce import dependence. However, for Tiruppur’s textile sector, the turnover criteria are difficult to meet. Many SMEs, which form the backbone of the industry, are left out of the scheme due to this restriction. Lowering the limit would enable more businesses to qualify for benefits, encouraging investments in innovative and high-demand products like technical textiles.
The Potential of Technical Textiles
Technical textiles refer to fabrics designed for functional purposes, such as medical textiles, industrial fabrics, and protective clothing. These products are increasingly in demand globally. Tiruppur’s businesses are eager to diversify into this promising sector, but limited access to government support has been a barrier to growth.
Current Challenges for Tiruppur’s Textile Sector
Tiruppur’s textile industry faces rising raw material costs and tough competition from countries like Bangladesh and Vietnam. The high turnover requirement for PLI eligibility adds to these challenges, restricting SMEs from expanding into technical textiles and modernizing their operations.
Challenges in the Textile Sector and the Need for Policy Reforms
Tiruppur’s textile sector, which contributes significantly to India’s economy, faces multiple challenges, including rising raw material costs and stiff competition from countries like Bangladesh and Vietnam. The current turnover limit for eligibility under the PLI scheme is a major obstacle for small and medium enterprises (SMEs).
Many businesses, unable to meet this threshold, are left without access to government incentives that could help them modernize their operations and diversify into high-demand areas like technical textiles. Reducing the turnover limit would provide these SMEs with the opportunity to access much-needed support, stimulate innovation, and enhance India's competitiveness in the global textile market.
Conclusion
Reducing the turnover limit for PLI eligibility in the 2025 Budget could unlock significant growth potential for Tiruppur’s textile sector. It would enable more SMEs to access government incentives, invest in technical textiles, and enhance India’s global competitiveness in the textile industry.
