The government’s Production-Linked Incentive (PLI) scheme for the food processing industry has created over 2.89 lakh jobs as of October 31, 2024, according to the Ministry of Food Processing Industries. The initiative has attracted an investment of ₹8,910 crore across 213 locations nationwide.
The PLI scheme for the Food Processing Industry (PLISFPI), launched on March 31, 2021, with a budget of ₹10,900 crore, is set to run from 2021-22 to 2026-27. The ministry reported that 171 beneficiaries have been selected under the scheme, following extensive stakeholder engagement and publicity efforts to ensure wide participation.
The scheme mandates the use of domestically produced agricultural products—excluding additives, flavours, and edible oils—boosting local procurement and supporting rural economies. This has benefitted farmers and spurred off-farm employment opportunities in underdeveloped regions, thereby contributing to rural economic growth.
The government also supports small and medium enterprises (SMEs) in food processing through related initiatives like the Pradhan Mantri Kisan Sampada Yojana (PMKSY) and the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme. These programs offer financial, technical, and marketing assistance to SMEs, encouraging capacity building, innovation, and formalization.
A significant number of beneficiaries under the PLI scheme are micro, small, and medium enterprises (MSMEs). Seventy MSMEs are enrolled directly, while 40 others operate as contract manufacturers for larger firms.
The scheme also includes a branding and marketing component for international markets, reimbursing up to 50% of expenditure, with a cap of ₹50 crore annually or 3% of yearly sales, whichever is lower. Currently, 73 beneficiaries are utilizing this feature.
This initiative continues to bolster domestic manufacturing, enhance value addition, and generate employment, supporting the overall growth of India’s food processing sector.