Textile PLI Scheme Round 4, 2026: Applications, Eligibility & Key Changes

The Ministry of Textiles has announced that applications for the Round 4 of the Production Linked Incentive (PLI) Scheme for Textiles will be accepted from 1 November 2026 to 31 December 2026. As mentioned in the Press Information Bureau (PIB) release on 28 October 2026, the Government has reduced the minimum turnover criterion from Rs. 200 crores to Rs. 100 crores for the segments covered under Part 2 of the scheme, so as to encourage MSMEs and mid-size manufacturing units to be a part of the scheme.

Furthermore, the Central government has extended the validity of the scheme to the 7th Financial Year (FY) 2033-34 for the applicants approved under Round 4. Previously approved participants for rounds 1, 2 and 3 would also be eligible to migrate, subject to the fulfilment of other conditions. The recent changes give textile manufacturers another opportunity to examine their eligibility for the scheme.

Textile PLI Scheme Round 4 Announcement at a Glance

The announcement relates to a government incentive scheme. Applying is voluntary, and the announcement does not create a new general compliance obligation for textile manufacturers.

What Is the PLI Scheme for Textiles in India?

The Production Linked Incentive (PLI) Scheme for Textiles is a government initiative introduced in September 2021 to encourage manufacturing investment and increase production in selected textile segments.

Unlike schemes that simply provide financial support for establishing a business, the Textile PLI Scheme links incentives to specified investment and production-related performance conditions. Participating companies must satisfy the applicable requirements to become eligible for incentives.

The scheme primarily focuses on manufacturing Man-Made Fibre (MMF) Apparel, MMF Fabrics and notified Technical Textile products.

It operates through two categories, Part 1 and Part 2, with different investment and turnover thresholds.

The scheme was originally designed to encourage larger manufacturing operations and improve India's competitiveness in domestic and international textile markets.

Over time, the Ministry of Textiles has amended several conditions to make participation more accessible. The October 2025 amendments to the Textile PLI Scheme reduced the investment thresholds and introduced other changes to support participation.

The Round 4 announcement of October 2026 builds on these earlier changes by reducing the Part 2 minimum turnover criterion and extending the scheme tenure for approved Round 4 applicants.

Why Has the Government Reopened the Textile PLI Scheme in 2026?

The Ministry of Textiles has reopened the application window to encourage further participation in textile manufacturing.

The announcement identifies several objectives behind the decision.

Encouraging Domestic Textile Manufacturing
The scheme aims to strengthen domestic manufacturing of MMF apparel, fabrics and technical textiles.

By encouraging investment in these segments, the government intends to support larger manufacturing capacities and improve India's position in textile production.

Increasing Participation by MSMEs and Mid-Sized Manufacturers
The reduction in the Part 2 minimum turnover criterion from Rs 200 crore to Rs 100 crore is intended to encourage participation by businesses that may find the earlier requirement difficult to meet.

However, the change does not mean that every MSME automatically qualifies. Applicants must still meet the other relevant scheme conditions.

Supporting Investment and Employment
Another objective is to attract investment in textile manufacturing and encourage employment generation.

The extended scheme tenure is intended to provide approved Round 4 applicants with a longer period for planning and developing their manufacturing operations.

Improving Global Competitiveness
The government also aims to strengthen India's position in global textile value chains by promoting manufacturing capabilities and production of higher-value textile products.

What Has Changed Under Textile PLI Scheme Round 4?

The Ministry of Textiles has announced three major modifications under Round 4.

Minimum Turnover Requirement Reduced from Rs 200 Crore to Rs 100 Crore
The most important change concerns the minimum turnover criterion under Part 2.

Earlier, the prescribed minimum turnover requirement was Rs 200 crore. Under the Round 4 announcement, it has been reduced to Rs 100 crore.

This change may make the scheme more accessible to eligible mid-sized manufacturers.

However, Rs 100 crore is a scheme turnover criterion. It should not automatically be interpreted as a requirement for every applicant to demonstrate Rs 100 crore in historical sales before applying. The applicable performance period and calculation must be checked against the scheme guidelines.

The reduction also does not eliminate the separate investment requirements or other eligibility conditions.

Scheme Tenure Extended Until FY 2033-34
The Ministry has extended the scheme tenure up to Financial Year 2033-34, exclusively for applicants approved under Round 4.

This provides a longer overall scheme horizon for those participants.

For manufacturers planning new production facilities or expansion of existing operations, the extension may be relevant when assessing investment and production plans.

However, the announcement does not say that every approved applicant will receive incentives for the entire period up to FY 2033-34. Eligibility for incentives and payment periods will be in accordance with provisions of the respective schemes.

Existing Participants Can Migrate to Round 4
The government has also introduced an option for qualifying companies participating under Rounds 1, 2 and 3 to migrate to Round 4.

This option applies to participant companies in either part of the scheme that have not claimed or received any incentive so far.

Migration is subject to withdrawal of their existing applications under the earlier rounds, as applicable.

Businesses should carefully examine the migration conditions before deciding to withdraw an earlier application.

Comparison of Important Round 4 Changes

These are the principal changes announced on 28 October 2026. Other conditions must be read alongside the relevant scheme notifications and operational guidelines.

Which Textile Manufacturers and Products Are Covered Under PLI Scheme Round 4?

The Textile PLI Scheme focuses on three main manufacturing segments.

Man-Made Fibre (MMF) Apparel Manufacturers
This segment covers eligible apparel products made using man-made fibres.

Man-made fibres include materials such as polyester and nylon, which are commonly used in clothing and textile manufacturing.

Manufacturers producing MMF garments may consider the scheme if their products fall within the officially notified eligible list.

The scheme does not automatically cover every garment made using synthetic fibres.

Man-Made Fibre (MMF) Fabric Manufacturers
The second segment covers notified MMF fabric products.

Manufacturers producing eligible synthetic fabrics may examine whether their operations and investment plans meet the scheme requirements.

The exact product classification matters because only notified products qualify for incentive calculations.

Technical Textile Manufacturers
Technical textiles are products manufactured primarily for their functional or performance characteristics rather than appearance alone.

They are used across sectors such as healthcare, agriculture, transportation, construction, industrial protection and infrastructure.

Manufacturers should check the notified technical textile product categories before assessing eligibility.

Important: The Ministry updated the product list in October 2025, by including eight HSN codes of MMF Apparel and nine HSN codes of MMF Fabrics. The October 2026 amendment was an earlier amendment and not a new change.

The complete eligible product list should be checked through the official scheme notifications.

What Are the Eligibility Criteria for Textile PLI Scheme Round 4?

Businesses considering the Textile PLI Scheme 2026 must understand both the investment and turnover conditions.

The scheme contains two categories with different financial thresholds.

Eligibility Under Part 1 and Part 2
The Ministry's October 2025 amendments, reduced the minimum investment requirement for new applicants from Rs 300 crore to Rs 150 crore under Part 1 and from Rs 100 crore to Rs 50 crore under Part 2.

The October 2026 announcement separately reduces the Part 2 minimum turnover criterion to Rs 100 crore.

The above-mentioned investment figures are based on the product list updated in October 2025. The turnover figure of Rs. 600 crores is based on the earlier scheme framework. Applicants are advised to ascertain their application category and other relevant conditions of Round 4, before taking a final decision on eligibility based on the above details.

Investment Requirements
An applicant's investment must satisfy the relevant scheme requirements.

The October 2025 Amendment lays down the provisions for eligible investments in plant, machinery, and equipment, and civil works, with certain exclusions, namely, cost of land and cost of an administrative building.

An applicant therefore cannot assume that every expense associated with a textile project will count towards the minimum investment requirement.

The applicable guidelines determine what qualifies as eligible investment and how it must be verified.

Incremental Turnover Requirements
A separate requirement concerns incremental turnover, meaning the prescribed increase in turnover over the relevant preceding period.

The October 2025 amendments reduced the additional incremental turnover requirement from 25% to 10% from the second performance year onwards, effective from FY 2025-26.

This should not be confused with the Rs 100 crore Part 2 minimum turnover criterion announced for Round 4.

The two conditions address different aspects of scheme performance.

Actual entitlement to an incentive depends on meeting the applicable conditions, including the investment and turnover requirements for the relevant period.

Textile PLI Scheme Round 4: Application Dates and Official Portal

The Ministry of Textiles has announced a two-month application window for Round 4.

Applications are scheduled to open on 1 November 2026 and close on 31 December 2026.

Eligible businesses can use the official portal:

https://pli.texmin.gov.in/

As of 29 October 2026, the new application window has not yet opened.

Businesses considering participation should use this period to review the scheme rules, eligible product lists and investment conditions.

Applicants should follow the official instructions applicable to Round 4 rather than assuming that procedures from earlier application rounds remain unchanged.

The PIB announcement does not specify a separate application fee, exact closing time or approval timeline.

Can Existing Textile PLI Scheme Participants Apply Under Round 4?

Yes. The Ministry has expressly provided a conditional migration opportunity for existing participants from Rounds 1, 2 and 3.

A company may qualify for migration where it:

• Is an existing participant under Round 1, 2 or 3 in either part of the scheme.
• Has not claimed any incentive so far.
• Has not received any incentive so far.
• Withdraws its existing application under the relevant earlier round, as applicable.

These requirements are important because the option is not available unconditionally to every existing participant.

Before making a migration decision, companies should review their earlier application status, any incentive claims and the current scheme provisions.

Withdrawal should not be treated as a routine administrative step without examining its implications.

How to Apply for Textile PLI Scheme Round 4 Online?

Businesses planning to submit a Textile PLI Scheme application should first complete an eligibility review.

The following is a practical preparation sequence. The exact online filing procedure must follow the official Round 4 portal instructions once available.

Step 1: Check the Eligible Product List
Identify the products the proposed unit will manufacture and compare their HSN classifications with the notified scheme lists.

Step 2: Identify the Applicable Scheme Category
Review whether Part 1 or Part 2 is appropriate based on the applicable investment and turnover conditions.

Step 3: Review the Proposed Investment
Examine the machinery, equipment, project expenditure and manufacturing capacity against the relevant investment rules.

Step 4: Access the Official Application Portal
During the announced application window, go to https://pli.texmin.gov.in/ and complete the application process.

Follow the instructions on the current version of the portal to complete the application process for the relevant application category, and to upload the required documents.

Step 5: Complete the Application Within the Deadline
The prescribed submission process has to be completed by 31 December 2026, unless changes are made to this by the Ministry.

Applicants must keep their application records and any acknowledgements issued to them through the portal.

The PIB release of the Ministry dated 28 October 2026, does not provide a step-by-step procedure for the Round 4 filing process. Hence, applicants should depend on the portal and relevant operational directives for the filing process.

What Information Should Applicants Prepare for Textile PLI Scheme Round 4?

Applicants can begin organising information relevant to assessing their proposed textile manufacturing project.

A useful preliminary review may cover the business's legal identity, the proposed manufacturing activity, eligible product classifications, investment plans and turnover projections.

Existing participants considering migration should also review the status of their earlier applications and incentive claims.

The scheme's operational framework includes investment verification and financial documentation requirements at relevant stages.

However, the PIB release of 28 October 2026 does not specify a complete Round 4 application-document checklist. It would therefore be incorrect to present a generic list as the government's mandatory filing requirements.

The exact documents, prescribed formats, certifications and submission stages must be confirmed from the applicable guidelines and portal instructions.

What Is the Impact of Textile PLI Scheme Round 4 on Businesses?

The reopening may be relevant to different groups of textile manufacturers, although the practical impact will depend on their products, project plans and eligibility.

The announcement is intended to encourage investment and wider participation. It does not guarantee financial assistance to every applicant.

What Business Opportunities Does Textile PLI Scheme Round 4 Offer Manufacturers?

The revised conditions may create opportunities for manufacturers that are considering eligible production projects.

For mid-sized companies, the lower Part 2 turnover criterion may make the scheme more relevant than it was under the earlier threshold.

Businesses planning to establish or expand production of notified MMF products and technical textiles may also benefit from evaluating how the scheme fits into their investment plans.

The extended tenure may be particularly relevant to approved Round 4 applicants planning manufacturing operations over several years.

However, manufacturers should assess the commercial viability of their projects independently. A possible PLI incentive should not be treated as guaranteed income or as a substitute for sound investment planning.

What Should Textile Manufacturers Check Before Applying?

Before submitting an application, interested businesses should focus on a few practical questions.

• Product Eligibility: Does the business manufacture, or plan to manufacture, products covered by the notified scheme list?
• Investment Eligibility: Check whether the proposed investment meets the minimum requirement and which expenses are covered under the scheme.
• Turnover Conditions: Check whether the business can meet the minimum and incremental turnover requirements.
• Application Category: Decide whether Part 1, or Part 2 fits the proposed project.
• Existing Application Status: Businesses that applied in an earlier round should check whether they meet the conditions for migration to Round 4.
• Documentation: Review the official instructions to identify the required documents, records, and declarations.

Answering these questions before filing can help a business determine whether it is ready to apply and which areas need further attention.

What Should Textile Manufacturers Do Next?

Textile manufacturers interested in Round 4 should review the government's announcement alongside the applicable scheme notifications.

They should confirm eligible product classifications, assess investment and turnover conditions and examine any project-specific requirements.

Existing participants should carefully review the migration option before making changes to earlier applications.

The announced application window begins on 1 November 2026, and closes on 31 December, 2026. Interested businesses should plan their application preparation around these dates.

Importantly, this is an opportunity to apply for an incentive scheme, not a compulsory registration requirement for all textile manufacturers.

How Corpseed Can Help Textile Manufacturers

Understanding the Textile PLI Scheme involves more than checking the announced turnover threshold. Businesses may also need to assess product eligibility, investment conditions and the regulatory requirements associated with setting up or expanding a textile manufacturing unit.

Corpseed's textile industry and business-compliance support provides a starting point for manufacturers seeking guidance on their projects and related regulatory needs.

Businesses can discuss their planned manufacturing activity, applicable approvals and the assistance available for preparing their project information.

For dedicated Textile PLI Scheme application or documentation assistance, the exact service scope should be confirmed with Corpseed.

Planning to apply under Textile PLI Scheme Round 4? Contact Corpseed to discuss your textile manufacturing project, eligibility considerations and available professional support.

Key Takeaways

The Ministry of Textiles will reopen Round 4 applications under the Production Linked Incentive Scheme for Textiles from 1 November to 31 December 2026.

The minimum turnover criterion under Part 2 has been reduced from Rs 200 crore to Rs 100 crore. The government has also extended the scheme tenure up to FY 2033-34 for applicants approved under Round 4.

Qualifying participants from earlier rounds may migrate if they meet the announced conditions concerning incentives and withdrawal of existing applications.

Interested manufacturers should review the official scheme guidelines and determine whether their products, investment plans and turnover expectations meet the applicable requirements.