Cabinet clears PLI scheme for textile sector – Siyaram Silk, Nitin Spinners, Deepak Spinners - STOCKS IN ACTION on Wednesday

The Narendra Modi Government on Wednesday approved the Production Linked Incentive (PLI) scheme. The decision was taken in a meeting of the Cabinet today. The stocks in the textile sectors have been buzzing with anticipation since the markets opened today.

Stocks of many textile companies today saw high action ahead of the Cabinet meeting.

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Siyaram Silk Mills shares surged most by 6.5 per cent, while Nitin Spinners, Deepak Spinners and Alok Industries each gained by almost 5 per cent. Similarly, Bombay Dyeing grew by over 4 per cent, whereas Welspun India and Arvind Fashion soared over 3 per cent each during intraday trade today.

“The PLI scheme for man-made fibre segment and technical textiles is expected to have a financial outlay of Rs 10,683 crore over five years to boost domestic manufacturing and exports from the sector, a PTI report said.

A similar affirmation was also communicated by Textiles Minister Piyush Goyal on Friday, when he had said, “the government is planning a PLI scheme for technical textile and man-made fibre, to improve the domestic production and manufacturing along with textiles export.”

The Cabinet had earlier approved PLI schemes in 13 key sectors for enhancing India’s manufacturing capabilities and exports. After the approval, the textiles ministry would come with detailed guidelines of the scheme for these sectors, the PTI report said further.

The scheme is expected to attract global investments, generate large employment opportunities and enhance exports substantially and will also help Indian firms to grow into global champions.

India’s export of man-made fibre (MMF) garments constitutes only 10 per cent of its total apparel exports, which was about USD 16 billion in 2019-20.

The textile company stocks have been surging since the Goyal announced various measures to uplift the textile exports and also to increase the domestic production. The government along with States will also provide land, water and all other requisite things to improve textile sector, Goyal had said.