{"id":39019,"date":"2026-04-21T17:35:24","date_gmt":"2026-04-21T12:05:24","guid":{"rendered":"https:\/\/udaen.info\/?p=39019"},"modified":"2026-04-21T17:35:26","modified_gmt":"2026-04-21T12:05:26","slug":"strengthening-indias-food-processing-ecosystem","status":"publish","type":"post","link":"https:\/\/udaen.info\/?p=39019","title":{"rendered":"Strengthening India\u2019s Food Processing Ecosystem"},"content":{"rendered":"\n

Strengthening India\u2019s Food Processing Ecosystem<\/h2>\n\n\n\n

<\/h3>\n\n\n\n

PIB Delhi<\/p>\n\n\n\n

 Key Takeaways<\/strong>PLISFPI (outlay \u20b910,900 crore; 2021-22 to 2026-27) <\/strong>aims to create global Indian food manufacturing champions by incentivising<\/strong> incremental sales and brand promotion.Under the scheme (as of Feb 2026):<\/u><\/strong>165 applications<\/strong> have been approved, corresponding to 274 project locations<\/strong>.Beneficiaries have received an incentive of<\/strong> \u20b92,162.55 crore<\/strong>~3.39 lakh jobs<\/strong> have been created, outperforming employment target of 2.5 lakh.<\/strong>Food processing and preservation capacity<\/strong> has grown by 34 lakh MT per annum<\/strong>Total export of agricultural processed food products<\/strong> has grown at a CAGR of 13.23%<\/strong> (2024-25 compared to 2019-20). <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Introduction              <\/strong><\/p>\n\n\n\n

India\u2019s food processing sector<\/strong> has emerged as a critical pillar of the agricultural and manufacturing ecosystem, driving value addition, strengthening market linkages, and enhancing the availability of processed foods<\/strong>. The sector has witnessed steady growth in recent years, with Gross Value Added<\/strong> (GVA) increasing from \u20b9<\/strong>1.34 lakh crore<\/strong> in 2014-15 to \u20b9<\/strong>2.24 lakh crore<\/strong> in 2023-24 as per the first revised estimates. Its rising global footprint is reflected in the share of processed food exports<\/strong> in agricultural exports, which grew from 13.7 percent <\/strong>in 2014-15 to 20.4 percent <\/strong>in <\/strong>2024-25.<\/p>\n\n\n\n

With its strong resource base as the world\u2019s second-largest producer of fruits and vegetables<\/strong>, India holds significant potential to emerge as a global hub for food processing<\/strong>. However, realizing this potential requires enhanced competitiveness in terms of scale of production, productivity, value addition, and integration with global value chains.<\/strong> Recognizing these imperatives, the Government introduced the Production-Linked Incentive Scheme for the Food Processing Industry (PLISFPI)<\/strong> to catalyse growth and position India more strongly in global markets<\/strong>.<\/p>\n\n\n\n

Understanding the Conceptual and Policy Framework of PLISFPI<\/strong><\/p>\n\n\n\n

The Production-Linked Incentive Scheme for the Food Processing Industry<\/strong>, approved by the Union Cabinet on 31 March 2021, falls within the broader Production-Linked Incentive Scheme.<\/strong><\/p>\n\n\n\n

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The Production Linked Incentive (PLI) Scheme was launched<\/strong> in April 2020<\/strong> to boost domestic manufacturing capabilities by offering financial incentives to eligible companies based on their incremental sales<\/strong>. It was introduced <\/strong>to enable the country to achieve more balanced and resilient progress by strengthening the manufacturing sector.<\/p>\n\n\n\n

Aligned with the vision of Atmanirbhar Bharat<\/em><\/strong> and the broader Make in India<\/strong> initiative, the PLI Scheme <\/strong>was initially introduced for sectors<\/strong> such as Mobile Manufacturing and<\/strong><\/p>\n\n\n\n

Specified Electronic Components, Critical Key Starting materials\/Drug Intermediaries and Active Pharmaceutical Ingredients, and Manufacturing of Medical Devices<\/strong>.  Over time, the PLI framework has been expanded to cover 14 strategic sectors,<\/strong> with an incentive outlay of \u20b9<\/strong>1.97 lakh crore<\/strong>, with food processing among the key sectors<\/strong>.<\/p>\n\n\n\n

With an outlay of \u20b9<\/strong>10,900 crore<\/strong>, PLISFPI<\/strong> is being implemented from 2021-22 to 2026-27.  The scheme seeks to generate processed food output of \u20b9<\/strong>33,494 crore<\/strong> and create employment for nearly 2.5 lakh persons<\/strong> by the year 2026-27.  <\/p>\n\n\n\n

\"A<\/figure>\n\n\n\n

From Production to Branding: The Integrated Framework of PLISFPI<\/strong><\/p>\n\n\n\n

The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) is structured around three core components<\/strong> designed to promote manufacturing, encourage innovation among SMEs, and support the global branding of Indian food products.<\/strong><\/p>\n\n\n\n

\"A<\/figure>\n\n\n\n

First component (Category I)<\/u><\/strong>: Incentivising the manufacturing of four major food product segments, <\/strong>viz. Ready-to-Cook\/Ready-to-Eat (RTC\/RTE) foods, including millet-based products, Processed Fruits & Vegetables, Marine Products, and Mozzarella Cheese.<\/p>\n\n\n\n

Second component (Category II)<\/u><\/strong>: Incentivising Innovative\/ Organic products of SMEs<\/strong> across all four food product segments, including Free Range- Eggs, Poultry Meat & Egg Products.<\/p>\n\n\n\n

Third component (Category III)<\/u><\/strong>: Support for branding and marketing <\/strong>abroad to incentivise the emergence of strong Indian brands, including in-store branding, shelf space rental, and marketing.<\/p>\n\n\n\n

Additionally, from the savings under PLISFPI, a new component- the Production Linked Incentive Scheme for Millet-Based Products (PLISMBP)<\/strong>– was carved out in FY 2022-23<\/strong> with an outlay of \u20b9<\/strong>800 crore<\/strong>. It aims to encourage the use of millets in RTC\/RTE products<\/strong> and to incentivize their use under the scheme to promote their production, value addition, and sale.<\/p>\n\n\n\n

Rewarding Growth: The Incentive Structure of PLISFPI<\/strong><\/p>\n\n\n\n

Under the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), the manufacturing components of the scheme (Category I and Category II)<\/strong> provide incentives to eligible food processing companies based on incremental sales of specified food products<\/strong>. Under these components, applicants must meet minimum sales thresholds in the base year (2019-20) and undertake prescribed investments in plant and machinery, technical civil works, and associated infrastructure<\/strong> in segments such as ready-to-eat\/ready-to-cook foods, processed fruits and vegetables, marine products, <\/strong>and mozzarella cheese.<\/strong><\/p>\n\n\n\n

Under Category III,<\/strong> the government provides financial incentives to support branding and marketing<\/strong> activities for Indian-branded consumer food products in global markets. Applicants are reimbursed 50% <\/strong>of their <\/strong>branding and marketing expenses abroad, capped at 3% of their annual food product sales or \u20b9<\/strong>50 crore per year<\/strong>, whichever is lower. Only Indian brands<\/strong> selling food products that are entirely manufactured in India<\/strong> are covered under this component. To qualify, applicants must spend a minimum of \u20b9<\/strong>5 crore over a period of five years<\/strong>.<\/p>\n\n\n\n

Institutional Mechanism and Implementation Framework of PLISFPI<\/strong><\/p>\n\n\n\n

The scheme is implemented through a Project Management Agency (PMA)<\/strong>. The Industrial Finance Corporation of India Limited (IFCI), a Government of India undertaking, has been appointed by the Ministry of Food Processing Industries as the PMA. <\/strong>Applications under PLISFPI are invited through an Expression of Interest (EOI)<\/strong> mechanism and submitted on an online portal<\/strong> (https:\/\/plimofpi.ifciltd.com<\/a>), where they are examined and appraised by the PMA within a defined timeline. Upon successful submission, a unique Application ID<\/strong> is issued for all future correspondence. A web-based MIS system<\/strong> is used for continuous online monitoring of project progress<\/strong> and for taking interim corrective measures, where required.<\/p>\n\n\n\n

Transformational Impact of PLISFPI: Strengthening Manufacturing, MSMEs, and Global Competitiveness<\/strong><\/p>\n\n\n\n

The scheme has facilitated the adoption of advanced technologies and the establishment of multiple production lines. It has resulted in the creation of 34 lakh MT per annum<\/strong> of processing and preservation capacity as of February 2026.<\/p>\n\n\n\n

PLISFPI has also attracted strong industry participation and investment:<\/p>\n\n\n\n