According to the Ministry of Food Processing Industries, the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) has resulted in the creation of over 2.89 lakh jobs and attracted an investment of Rs 8,910 crore across 213 locations as of October. This scheme has played a crucial role in the country’s overall growth and development by promoting domestic manufacturing, increasing value addition, boosting the production of raw materials, and generating employment opportunities.
The PLI scheme has particularly benefited MSMEs, with 70 MSMEs directly enrolled and 40 others serving as contract manufacturers for larger companies. These initiatives have not only fostered innovation and improved competitiveness for SMEs but also expanded their market access and created employment opportunities, thus strengthening the entire value chain in the food processing industry. The scheme also supports large companies, millet-based products, innovative and organic products, as well as small and medium enterprises, while also promoting Indian brands globally.
One of the key features of the PLI scheme is the mandatory use of domestically grown agricultural products (excluding additives, flavours, and edible oils) in the manufacturing process. This has significantly increased the procurement of local raw materials, benefiting underdeveloped and rural areas and supporting farmers’ incomes. Moreover, the emphasis on local production of raw materials for processed food has created additional off-farm employment opportunities, contributing significantly to the economic development of rural regions.
Under the PLISFPI, the Government provides financial incentives to promote Indian food brands abroad, supporting branding and marketing activities for Indian-branded consumer food products in global markets. Beneficiaries are reimbursed 50 per cent of their expenditure on branding and marketing abroad, capped at three per cent of their annual food product sales or Rs 50 crore per year, whichever is lower. To qualify for this component of the scheme, applicants must spend a minimum of Rs 5 crore over five years. Currently, there are 73 beneficiaries under this component, as per the ministry’s release.