**Executive Summary**
The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), with an outlay of ₹10,900 crore, is a six-year initiative (FY 2021–22 to FY 2026–27) designed to strengthen India's food processing sector and promote global brands. The scheme incentivizes high-value food segments, SME innovation, and international branding while focusing on capacity expansion and employment generation. To date, it has facilitated over ₹9,207 crore in investment, created significant processing capacity, and substantially increased millet-based product sales and exports.
**Key Points / Main Content**
* **Scheme Framework and Components**
* The scheme operates for six years from FY 2021–22 to FY 2026–27 with a total financial outlay of ₹10,900 crore.
* Focuses on four major food segments: Ready to Cook/Ready to Eat (RTC/RTE), Processed Fruits & Vegetables, Marine Products, and Mozzarella Cheese.
* Provides dedicated support for the production of Innovative/Organic products by SMEs.
* Includes a branding and marketing component to support Indian brands abroad through in-store branding, shelf space renting, and marketing.
* Features a specific sub-scheme (PLISMBP) to incentivize millet-based products and increase millet usage in food items.
* **Implementation and Participation**
* A total of 128 companies have been approved, covering 274 units across 22 states.
* Ensures inclusivity with 68 MSME applicants and 40 contract manufacturing units supported.
* Facilitated technology upgradation and modernization of processing units nationwide.
* **Investment and Growth Statistics**
* Achieved a cumulative investment of ₹9,207 crore, surpassing the committed amount of ₹7,722 crore.
* Added approximately 34 lakh metric tonnes per annum of processing and preservation capacity.
* Generated employment for approximately 3.29 lakh persons through direct and indirect roles.
* Recorded a Sales CAGR of 10.58% and an Export CAGR of 7.41% for PLI-supported products.
* **Millet Sector Performance**
* Sales of millet-based products increased from ₹345.73 crore (FY 2022-23) to ₹1845.25 crore (FY 2024-25).
* Procurement of millets grew 15-fold, rising from 1103.18 MT to 17089.16 MT.
**Impact Analysis**
**Food Processing Companies and MSMEs**
**Impact**
Participating entities benefit from financial incentives that drive capacity creation, technology modernization, and increased production of value-added goods. MSMEs specifically gain support for innovative and organic product lines.
**Action Required**
Approved companies must meet investment commitments and production targets to qualify for incentives under the scheme’s various components.
**Indian Brands and Exporters**
**Impact**
Brands receive support for international branding and marketing, increasing their global visibility and presence in international retail spaces (shelf space renting).
**Action Required**
Companies must leverage the branding and marketing component to expand their global footprint and promote Indian-made food products in international markets.
**Farmers**
**Impact**
Farmers benefit from a strengthened farm-to-fork value chain, reduced post-harvest losses, and increased demand for raw materials, particularly millets, leading to higher income.
**Action Required**
No specific action is mandated for farmers, though they are expected to supply the increased raw material requirements of the expanding processing units.
**Rural and Off-farm Workforce**
**Impact**
The scheme creates significant employment opportunities, with 3.29 lakh jobs generated to date, particularly in rural areas.
**Action Required**
The workforce is required to fill direct and indirect roles created by the expansion and modernization of food processing units.
Key Entities Referenced
Production Linked Incentive Scheme for Food Processing Industry (PLISFPI): A central government initiative with an outlay of ₹10,900 crore designed to strengthen India's food processing sector and create global manufacturing champions.
Ministry of Food Processing Industries: The primary ministry responsible for the implementation, oversight, and incentivization of the food processing industry under the PLI scheme.
Production Linked Incentive Scheme for Millet-Based Products (PLISMBP): A specific component of the PLI scheme aimed at increasing the usage of millets in food products and promoting their value addition and sales.
Ministry of Food Processing Industries
Production Linked Incentive Scheme for Food
Processing Industry (PLISFPI) - A Major Push for
India’s Food Processing Industry
Posted On: 07 APR 2026 2:28PM by PIB Delhi
The Production Linked Incentive (PLI) Scheme for Food Processing Industry, launched by the Ministry of
Food Processing Industries, is a major initiative aimed at strengthening India’s food processing sector,
promoting Indian brands in global markets, and creating global food manufacturing champions. The
scheme is being implemented for a period of six years from FY 2021–22 to FY 2026–27 with a total
financial outlay of ₹10,900 crore. The scheme focuses on increasing value addition in the food processing
sector, expanding processing capacity, and generating employment, particularly in rural areas and off-farm
sectors.
The components of the Scheme are – Incentivising manufacturing of four major food product segments
viz. Ready to Cook/ Ready to Eat (RTC/RTE) foods, Processed Fruits & Vegetables, Marine Products and
Mozzarella Cheese. The second component relates to production of Innovative / Organic products of
SMEs. The third component related to support for branding and marketing abroad to incentivize
emergence of strong Indian brands for in-store Branding, shelf space renting and marketing. In the
backdrop of declaration of Year 2023 as “International Year of Millets”, the Ministry took the initiative to
encourage the use of Millets in RTC/RTE products and incentivizing them under the PLI Scheme
(PLISMBP) to increase usage of millets in food products and promote value addition and sales.
Under the scheme, a total of 128 companies has been approved, covering 274 units across the country. The
scheme has also ensured strong participation from the MSME sector, with 68 MSME applicants and 40
contract manufacturing units being supported. This reflects the inclusive nature of the scheme, which
supports both large food processing companies and small and medium enterprises, thereby strengthening
the entire food processing value chain. The scheme has led to significant capacity creation, technology
upgradation, and modernization of food processing units across various states in the country.
The investment performance under the scheme has been highly encouraging. Against a committed
investment of ₹7,722 crore, a cumulative investment of ₹9,207 crore has been made under the scheme in
22 States, indicating that companies have invested more than their initial commitments. Further, around 34
lakh metric tonnes per annum of processing and preservation capacity has been added under the scheme.
The scheme has also generated employment of about 3.29 lakh persons, including both direct and indirect
employment. The sales of PLI products increased by CAGR of 10.58% and export sales of PLI products
increased by CAGR of 7.41% despite challenging macroeconomic factors.
The sale of Millet-Based Products has also been increased from Rs. 345.73 crores (FY 2022-23) to
Rs.1845.25 crores (FY 2024-25) due to interventions of PLISFPI scheme. The procurement of millets has
also increased from Rs. 1103.18 MT to Rs.17089.16 MT which is 15 times more.The scheme has also contributed to the growth in sales and exports of PLI-supported products. Value-
added products such as RTC/RTE products, processed Fruits and Vegetables, marine products, mozzarella
cheese, and millet-based products have shown significant growth under the scheme. Importantly, the
scheme has ensured that complete value addition of manufactured products is taking place within India,
thereby supporting domestic manufacturing, increasing farmers’ income, and strengthening the farm-to-
fork value chain.
The PLI Scheme has also supported branding and marketing of Indian food products under the branding
and marketing component, enabling Indian brands to expand their presence in international markets. This
is helping India emerge as a strong global player in the processed food sector and increasing the global
visibility of Indian food brands.
Overall, the Production Linked Incentive Scheme for Food Processing Industry is playing a transformative
role in the development of the food processing sector by promoting investment, increasing production
capacity, boosting exports, supporting Indian brands, generating employment, and strengthening the
overall food processing ecosystem in the country. The scheme is aligned with the Government of India’s
vision of increasing value addition in agriculture, reducing post-harvest losses, and making India a global
hub for food processing.Click here for link
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