In a significant economic development, the food processing industry has demonstrated robust growth by investing ₹7,126 crore under the production-linked incentive (PLI) scheme, achieving substantial sales of ₹49,825 crore from April to September, as confirmed by an official government statement.
As of the current fiscal year, incentives totalling ₹584.30 crore have already been disbursed, with beneficiaries required to submit their incentive claims for a specific financial year by December 31 of the following year. The union cabinet’s approval of the PLI scheme on March 31, 2021, with an outlay of ₹10,900 crore, underscores the government’s commitment to fostering growth in the food processing sector. The scheme is slated for implementation from FY22 to FY27 and comprises three key components.
The scheme strategically focuses on incentivizing manufacturing in four vital food product segments—ready-to-cook or ready-to-eat foods, processed fruits and vegetables, marine products, and mozzarella cheese. Furthermore, it seeks to promote innovation in organic products from SMEs and encourages branding and marketing efforts to elevate Indian brands in global markets.
In a complementary initiative, a dedicated PLI scheme has been launched in FY23 to promote millet-based products, utilizing savings from the food processing scheme and backed by an ₹800 crore outlay.
During the formulation of the food processing PLI scheme, the government undertook collaborative efforts to align it with global best practices and market demands. Stakeholder engagement, involving industry experts, large-scale manufacturers, and SMEs, played a pivotal role in shaping the scheme’s guidelines. Ongoing consultations with stakeholders ensure the continued relevance and effectiveness of the scheme.
The scheme sets ambitious targets, aiming to generate employment for about 2.5 lakh people. As of September 30, quarterly reports from beneficiaries indicate significant progress, with approximately 2.37 lakh jobs already created. A KPMG report forecasts substantial growth in the Indian food processing market, estimating an increase from $263 billion in 2019-20 to $470 billion by 2025.