The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) has significantly enhanced food processing capacity, job opportunities, and exports, with beneficiaries receiving a total incentive of Rs 2,162.55 crore. According to an official statement, the food processing and preservation capacity has surged by 34 lakh MT per annum, showcasing the scheme’s positive impact.
A total of 165 applications have been greenlit, covering 274 project locations, leading to investments of Rs. 9,207 crore and the creation of approximately 3.39 lakh direct and indirect jobs, surpassing the initial employment target of 2.5 lakh. The scheme has also been beneficial for Micro, Small, and Medium Enterprises (MSMEs), with 69 out of the 165 approved applicants falling under this category. Moreover, 40 contract manufacturing units associated with the primary approved applicants are classified as MSMEs, indicating their widespread integration across the value chain.
The statement highlighted that Rs 13.26 crore in incentives were disbursed to 20 eligible MSMEs. With an allocated budget of Rs 10,900 crore, the PLISFPI is set to operate from 2021-22 to 2026-27, aiming to generate processed food output worth Rs 33,494 crore.
India’s food processing sector has shown consistent growth in recent years, with Gross Value Added (GVA) rising from Rs 1.34 lakh crore in 2014-15 to Rs 2.24 lakh crore in 2023-24, as per the first revised estimates. The sector’s expanding global presence is evident in the processed food exports’ share in agricultural exports, which climbed from 13.7 per cent in 2014-15 to 20.4 per cent in 2024-25.
Utilizing savings from PLISFPI, a new initiative, the Production Linked Incentive Scheme for Millet-Based Products, was introduced in FY23 with an Rs 800 crore budget to promote millets in ready-to-cook and ready-to-eat products. The PLISFPI aims to boost manufacturing, foster innovation among SMEs, and enhance the global recognition of Indian food products.
