Budget 2025: Production Linked Incentive Scheme for the Food Processing Industry 

HomeBusiness NewsBudget 2025: ₹1,200 crore for Production Linked Incentive Scheme for the Food Processing IndustryUnder the scheme, the government offers financial incentives to promote Indian food brands abroad.Finance Minister Nirmala Sitharaman on Saturday, February 1, presented a record eighth consecutive Union Budget. The Production Linked Incentive Scheme for the Food Processing Industry was allocated with a budget of ₹1,200 crore for 2025.Nifty GainersCompanyValueChange%ChangeWhat is the Production Linked Incentive Scheme for the Food Processing Industry?The Production Linked Incentive Scheme for the Food Processing Industry has been developed based on the Production Linked incentive scheme of NITI Aayog under ‘AatmaNirbhar Bharat Abhiyaan for Enhancing India’s Manufacturing Capabilities and Enhancing Exports.’ This sector includes manufacturing firms ranging from micro to large.Under the scheme, the government offers financial incentives to promote Indian food brands abroad, assisting them with branding and marketing operations across the global market.As of December 2024, there were 73 beneficiaries under this component of the PLI scheme. The scheme has generated employment for over 2.89 lakh (as of October 31, 2024).The beneficiaries of the scheme receive 50% reimbursement for branding and marketing expenses abroad, capped at 3% of the annual food product sales or ₹50 crore per year, whichever is lower. Applicants must spend a minimum of ₹5 crore over five years to qualify.Objectives:The scheme supports global food manufacturing champions, strengthens Indian food brands for global visibility and acceptance, increases off-farm employment opportunities, and ensures fair farm produce prices and income for farmers.It also supports food manufacturing companies that meet minimum sales requirements and are prepared to make minimum stipulated investments in processing capacity expansion and international branding to encourage the growth of strong Indian brands.Allocation:The scheme was approved by the Union Cabinet on March 31, 2021, with a budget of ₹10,900 crore to be implemented from 2021-22 to 2026-27. In July 2024, MOFPI allocated a budget of ₹1,444.02 crores for PLI for the Food Processing Industry.(Edited by : Sudarsanan Mani) Live TVLoading…Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!