The Production Linked Incentive (PLI) Scheme for Food Processing Industry stands as a key initiative by the Ministry of Food Processing Industries to reinforce India's food processing sector, promote Indian brands globally, and foster global food manufacturing champions. This scheme is operational for a period spanning six years, from FY 2021-22 to FY 2026-27, with a total financial outlay of ₹10,900 crore. The focus areas of the scheme include increasing value addition in the food processing sector, expanding processing capacity, and generating employment, with a specific emphasis on rural and off-farm job creation.
The scheme structure covers several components, targeting the manufacturing of four major food product segments: Ready to Cook/Ready to Eat (RTC/RTE) foods, Processed Fruits & Vegetables, Marine Products, and Mozzarella Cheese. Additionally, the plan supports the production of Innovative / Organic products by SMEs. A third component is dedicated to supporting international branding and marketing to help Indian brands establish a presence through in-store branding and shelf space renting.
Responding to the declaration of Year 2023 as the "International Year of Millets," the Ministry introduced a specific incentive for encouraging the use of millets in RTC/RTE products under the PLI Scheme (PLISMBP). This move aims to increase millet utilization in food products while promoting value addition and sales.
The scheme has seen participation from a total of 128 approved companies across 274 units nationwide. Support has been notably inclusive, with the MSME sector comprising 68 applicants and 40 contract manufacturing units benefiting from the initiative.
Investment performance under the PLI scheme shows strong metrics. Against a committed investment of ₹7,722 crore, the cumulative investment recorded under the scheme across 22 States reached ₹9,207 crore, indicating investments exceeding initial commitments. Furthermore, the scheme has facilitated the addition of approximately 34 lakh metric tonnes per annum in processing and preservation capacity. Employment generation is reported at about 3.29 lakh persons, encompassing both direct and indirect roles.
The growth trajectory for PLI products has been robust. Sales of PLI products grew at a Compound Annual Growth Rate (CAGR) of 10.58%, while export sales of PLI products recorded a CAGR of 7.41%, despite challenging macroeconomic conditions.
The impact of the PLISFPI scheme is particularly visible in the growth of millet-based products. Sales increased from Rs. 345.73 crores in FY 2022-23 to Rs. 1845.25 crores in FY 2024-25. Concurrently, the procurement of millets increased significantly, moving from Rs. 1103.18 MT to Rs. 17089.16 MT, marking a 15 times increase.
Value-added products, including RTC/RTE products, processed Fruits and Vegetables, marine products, mozzarella cheese, and millet-based items, have shown considerable growth supported by the scheme. The scheme has ensured that complete value addition occurs within India, which aids domestic manufacturing, boosts farmers' incomes, and strengthens the farm-to-fork value chain.
The marketing component of the PLI Scheme supports the branding and marketing of Indian food products internationally, helping Indian brands expand their global footprint and enhancing the global visibility of Indian food brands.
In summary, the Production Linked Incentive Scheme is playing a transformative role by promoting investment, increasing production capacity, boosting exports, supporting domestic brands, generating employment, and strengthening the overall food processing ecosystem, aligning with the Government of India's goals of increasing agricultural value addition and establishing India as a global food processing hub.
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