The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) has significantly boosted India’s food processing sector, driving capacity expansion, job creation, and export growth. The government announced on Tuesday that beneficiaries have received incentives worth ₹2,162.55 crore under the scheme.
According to the official statement, food processing and preservation capacity has grown by 34 lakh metric tonnes per annum. A total of 165 applications have been approved across 274 project locations, mobilizing investments of ₹9,207 crore. The scheme has created about 3.39 lakh direct and indirect jobs, surpassing the employment target of 2.5 lakh.
The initiative has also strengthened the role of MSMEs, with 69 of the approved applicants belonging to this category. Additionally, 40 contract manufacturing units linked to the main applicants are MSMEs, highlighting their integration across the value chain. Incentives worth ₹13.26 crore have already been disbursed to 20 eligible MSMEs.
With an outlay of ₹10,900 crore, PLISFPI is being implemented from 2021-22 to 2026-27, aiming to generate processed food output worth ₹33,494 crore. India’s food processing sector has shown steady growth, with Gross Value Added (GVA) rising from ₹1.34 lakh crore in 2014-15 to ₹2.24 lakh crore in 2023-24. The sector’s global footprint has also expanded, with processed food exports increasing from 13.7% of agricultural exports in 2014-15 to 20.4% in 2024-25.
From savings under PLISFPI, a new component – the Production Linked Incentive Scheme for Millet-Based Products – was introduced in FY23 with an outlay of ₹800 crore to encourage ready-to-cook and ready-to-eat millet products. Officials said the scheme is designed to promote manufacturing, foster innovation among SMEs, and strengthen the global branding of Indian food products.