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The PLI scheme for the food processing industry has been a major contributor to job growth, creating over 2.89 lakh jobs as of October 31, 2024. This scheme, approved by the Union Cabinet in March 2021, aims to strengthen the country’s food processing sector and has attracted an investment of Rs 8,910 crore across 213 locations.
With a total budget of Rs 10,900 crore, the PLI scheme is set to run from 2021-22 to 2026-27 and has benefited 171 applicants, including many small and medium enterprises (SMEs). The scheme has not only promoted domestic manufacturing and value addition but also significantly boosted employment, particularly in rural areas. By mandating the use of domestically grown agricultural products in food processing, the scheme has driven local procurement, supporting farmers’ incomes and fostering rural economic growth.
The emphasis on local production of raw materials for processed food has also generated additional off-farm employment opportunities, significantly contributing to the economic development of rural regions. This is in line with the government’s larger initiative to support the food processing industry, which includes the Pradhan Mantri Kisan Sampada Yojana (PMKSY) and the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme. These projects provide financial, technical, and marketing assistance to SMEs, encouraging innovation, growth, and formalization in the sector.
Under the PLI scheme, beneficiaries can receive reimbursement for up to 50% of their international branding and marketing costs, subject to a maximum of Rs 50 crore per year. Currently, 73 participants benefit from this component of the scheme, reflecting its growing impact on the sector.
The PLI scheme has not only created jobs but also boosted the domestic food processing industry, promoting local procurement and supporting rural economic growth. With the government’s continued support and initiatives, the sector is expected to see further growth and development, contributing to the overall economic growth of the country.