THEBUSINESSBYTES
BUREAU
NEW
DELHI, APRIL 7, 2026
The Production Linked
Incentive Scheme for Food Processing Industry (PLISFPI) is emerging as a
powerful catalyst in transforming India’s food processing sector, strengthening
domestic manufacturing capabilities, boosting exports, and positioning Indian
brands on the global stage. Launched by the Ministry of Food Processing
Industries with a financial outlay of ₹10,900 crore, the six-year initiative spanning FY 2021–22
to FY 2026–27 is playing a decisive role in enhancing value addition, expanding
processing capacity, and generating employment, particularly in rural and
off-farm sectors.
The scheme focuses on
incentivising manufacturing across four key segments — Ready to Cook and Ready
to Eat products, processed fruits and vegetables, marine products, and
mozzarella cheese — while also promoting innovative and organic offerings from
small and medium enterprises. In addition, the branding and marketing support
component is enabling Indian companies to secure shelf space and strengthen
their visibility in international markets, encouraging the emergence of
globally competitive Indian food brands. The initiative has also provided a
strong impetus to millet-based products, aligning with the Government’s efforts
following the declaration of 2023 as the International Year of Millets and
encouraging greater use of millets in modern packaged food formats.
PLISFPI has witnessed
robust participation across the industry spectrum, with 128 companies approved
under the scheme, covering 274 manufacturing units nationwide. Significantly,
the programme has seen strong representation from the MSME sector, with 68 MSME
applicants and 40 contract manufacturing units benefiting from the incentives.
This inclusive participation has strengthened the food processing ecosystem,
enabling technology upgradation, modernization of facilities, and expansion of
production capabilities across multiple states.
Investment momentum
under the scheme has exceeded expectations. Against a committed investment of ₹7,722 crore, companies
have already invested ₹9,207
crore across 22 states, reflecting strong industry confidence in India’s food
processing potential. The scheme has facilitated the creation of processing and
preservation capacity of around 34 lakh metric tonnes per annum and generated
employment for approximately 3.29 lakh people through direct and indirect
opportunities.
The performance of
PLI-supported products has remained encouraging despite global macroeconomic
challenges, with sales registering a compound annual growth rate of 10.58
percent and export sales growing at a CAGR of 7.41 percent. Millet-based
products, in particular, have recorded remarkable growth, with sales rising
from ₹345.73 crore in FY 2022–23 to
₹1,845.25 crore in FY 2024–25. Procurement of millets has
also increased significantly from 1,103.18 metric tonnes to 17,089.16 metric
tonnes, highlighting rising demand and improved value realization for farmers.
The scheme has ensured that value addition for a wide range of processed foods takes place within India, strengthening the farm-to-fork supply chain and contributing to higher incomes for farmers. By supporting branding, encouraging innovation, and enhancing production capabilities, PLISFPI is helping India emerge as a competitive global hub for processed foods.
Overall, the Production Linked Incentive Scheme for Food Processing Industry is proving to be a transformative initiative, driving investment, generating employment, promoting exports, and reinforcing India’s position in the global food value chain while supporting the Government’s vision of boosting agricultural value addition and reducing post-harvest losses.
