**Executive Summary**
The Production-Linked Incentive Scheme for the Food Processing Industry (PLISFPI), with an outlay of ₹10,900 crore, aims to create global Indian food manufacturing champions and promote international branding between 2021-22 and 2026-27. As of February 2026, the scheme has approved 165 applications across 274 locations, resulting in the creation of 3.39 lakh jobs and a processing capacity growth of 34 lakh MT per annum. Key objectives include incentivizing incremental sales and strengthening India’s presence in global value chains.
**Key Points / Main Content**
**Scheme Structure and Components**
* **Category I:** Incentivizes the manufacturing of four major segments: Ready-to-Cook/Ready-to-Eat (RTC/RTE) foods, processed fruits and vegetables, marine products, and mozzarella cheese.
* **Category II:** Targets SMEs producing innovative or organic products, including free-range eggs, poultry meat, and egg products.
* **Category III:** Supports branding and marketing abroad by reimbursing 50% of expenses, capped at 3% of sales or ₹50 crore per year.
* **Millet-Based Products (PLISMBP):** A sub-component carved out in FY 2022-23 with an ₹800 crore outlay to promote millet production and value addition.
**Financial and Investment Requirements**
* Incentives are disbursed based on incremental sales over the base year (2019-20).
* Applicants must meet specific investment thresholds in plant, machinery, and technical civil works.
* For Category III support, applicants must spend a minimum of ₹5 crore over five years on branding Indian products manufactured entirely in India.
**Implementation Framework**
* **Project Management Agency (PMA):** The Industrial Finance Corporation of India Limited (IFCI) manages the appraisal and examination of applications.
* **Monitoring:** A web-based Management Information System (MIS) is used for continuous online monitoring and interim corrective measures.
* **Application Process:** Conducted through an online portal via an Expression of Interest (EOI) mechanism.
**Growth and Performance Metrics**
* **Investment:** Beneficiaries have reported investments totaling ₹9,207 crore as of February 2026.
* **Exports:** Processed food exports grew at a CAGR of 13.23% between 2019-20 and 2024-25.
* **Capacity:** Processing and preservation capacity has expanded by 34 lakh MT per annum.
**Impact Analysis**
**Food Manufacturing Companies (Large and SMEs)**
**Impact**
Eligible companies benefit from financial incentives linked to sales growth, enabling them to adopt advanced technologies and expand production lines. MSMEs have received ₹13.266 crore in incentives (as of February 2025), with 69 MSME applicants approved.
**Action Required**
Must meet minimum sales thresholds and undertake prescribed investments in infrastructure and machinery to remain eligible for disbursements.
**Indian Brands Seeking Global Presence**
**Impact**
Companies receive 50% reimbursement for international marketing costs, including shelf space rental and in-store branding, helping them compete in global markets.
**Action Required**
Must ensure all products are entirely manufactured in India and commit to a minimum marketing expenditure of ₹5 crore over five years.
**Workforce and Agricultural Producers**
**Impact**
The sector has generated 3.39 lakh jobs, exceeding the initial target of 2.5 lakh. Increased processing capacity ensures more remunerative prices for farm produce and reduces post-harvest wastage.
**Action Required**
No direct action required; however, the workforce and farmers benefit from the increased demand for high-quality raw materials and value-added processing.
Key Entities Referenced
Production-Linked Incentive Scheme for the Food Processing Industry (PLISFPI): A central sector scheme with a ₹10,900 crore outlay designed to create global food manufacturing champions by incentivizing incremental sales and brand promotion.
Ministry of Food Processing Industries: The primary ministry responsible for implementing the PLISFPI, approving applications, and overseeing the growth of India's food processing sector.
Industrial Finance Corporation of India Limited (IFCI): The designated Project Management Agency (PMA) responsible for appraising applications and monitoring the progress of projects under the PLISFPI.
Production Linked Incentive (PLI) Scheme: The broader national policy framework launched in 2020 to boost domestic manufacturing capabilities across 14 strategic sectors, including food processing.
Production Linked Incentive Scheme for Millet-Based Products (PLISMBP): A specific sub-component of PLISFPI introduced in FY 2022-23 with an ₹800 crore outlay to encourage the production, value addition, and sale of millet-based products.
PIB Headquarters
Strengthening India’s Food Processing
Ecosystem
Posted On: 21 APR 2026 11:06AM by PIB Delhi
Key Takeaways
PLISFPI (outlay ₹10,900 crore; 2021-22 to 2026-27) aims to create global Indian food
manufacturing champions by incentivising incremental sales and brand promotion.
Under the scheme (as of Feb 2026):
165 applications have been approved, corresponding to 274 project locations.
Beneficiaries have received an incentive of ₹2,162.55 crore
~3.39 lakh jobs have been created, outperforming employment target of 2.5 lakh.
Food processing and preservation capacity has grown by 34 lakh MT per annum
Total export of agricultural processed food products has grown at a CAGR of 13.23% (2024-
25 compared to 2019-20).
Introduction
India’s food processing sector has emerged as a critical pillar of the agricultural and manufacturing
ecosystem, driving value addition, strengthening market linkages, and enhancing the availability of
processed foods. The sector has witnessed steady growth in recent years, with Gross Value Added (GVA)
increasing from ₹1.34 lakh crore in 2014-15 to ₹2.24 lakh crore in 2023-24 as per the first revised
estimates. Its rising global footprint is reflected in the share of processed food exports in agricultural
exports, which grew from 13.7 percent in 2014-15 to 20.4 percent in 2024-25.
With its strong resource base as the world’s second-largest producer of fruits and vegetables, India
holds significant potential to emerge as a global hub for food processing. However, realizing this
potential requires enhanced competitiveness in terms of scale of production, productivity, value
addition, and integration with global value chains. Recognizing these imperatives, the Government
introduced the Production-Linked Incentive Scheme for the Food Processing Industry (PLISFPI) to
catalyse growth and position India more strongly in global markets.
Understanding the Conceptual and Policy Framework of PLISFPI
The Production-Linked Incentive Scheme for the Food Processing Industry, approved by the Union
Cabinet on 31 March 2021, falls within the broader Production-Linked Incentive Scheme.The Production Linked Incentive (PLI) Scheme was launched in April 2020 to boost domestic
manufacturing capabilities by offering financial incentives to eligible companies based on their
incremental sales. It was introduced to enable the country to achieve more balanced and resilient progress
by strengthening the manufacturing sector.
Aligned with the vision of Atmanirbhar Bharat and the broader Make in India initiative, the PLI
Scheme was initially introduced for sectors such as Mobile Manufacturing and
Specified Electronic Components, Critical Key Starting materials/Drug Intermediaries and Active
Pharmaceutical Ingredients, and Manufacturing of Medical Devices. Over time, the PLI framework
has been expanded to cover 14 strategic sectors, with an incentive outlay of ₹1.97 lakh crore, with food
processing among the key sectors.
With an outlay of ₹10,900 crore, PLISFPI is being implemented from 2021-22 to 2026-27. The scheme
seeks to generate processed food output of ₹33,494 crore and create employment for nearly 2.5 lakh
persons by the year 2026-27.From Production to Branding: The Integrated Framework of PLISFPI
The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) is structured around
three core components designed to promote manufacturing, encourage innovation among SMEs, and
support the global branding of Indian food products.
First component (Category I): Incentivising the manufacturing of four major food product segments,
viz. Ready-to-Cook/Ready-to-Eat (RTC/RTE) foods, including millet-based products, Processed Fruits &
Vegetables, Marine Products, and Mozzarella Cheese.
Second component (Category II): Incentivising Innovative/ Organic products of SMEs across all four
food product segments, including Free Range- Eggs, Poultry Meat & Egg Products.
Third component (Category III): Support for branding and marketing abroad to incentivise the
emergence of strong Indian brands, including in-store branding, shelf space rental, and marketing.
Additionally, from the savings under PLISFPI, a new component- the Production Linked Incentive
Scheme for Millet-Based Products (PLISMBP)- was carved out in FY 2022-23 with an outlay of ₹800
crore. It aims to encourage the use of millets in RTC/RTE products and to incentivize their use under the
scheme to promote their production, value addition, and sale.
Rewarding Growth: The Incentive Structure of PLISFPI
Under the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), the
manufacturing components of the scheme (Category I and Category II) provide incentives to eligible
food processing companies based on incremental sales of specified food products. Under these
components, applicants must meet minimum sales thresholds in the base year (2019-20) and undertakeprescribed investments in plant and machinery, technical civil works, and associated infrastructure in
segments such as ready-to-eat/ready-to-cook foods, processed fruits and vegetables, marine products,
and mozzarella cheese.
Under Category III, the government provides financial incentives to support branding and marketing
activities for Indian-branded consumer food products in global markets. Applicants are reimbursed 50%
of their branding and marketing expenses abroad, capped at 3% of their annual food product sales or
₹50 crore per year, whichever is lower. Only Indian brands selling food products that are entirely
manufactured in India are covered under this component. To qualify, applicants must spend a minimum
of ₹5 crore over a period of five years.
Institutional Mechanism and Implementation Framework of PLISFPI
The scheme is implemented through a Project Management Agency (PMA). The Industrial Finance
Corporation of India Limited (IFCI), a Government of India undertaking, has been appointed by the
Ministry of Food Processing Industries as the PMA. Applications under PLISFPI are invited through an
Expression of Interest (EOI) mechanism and submitted on an online portal (https://plimofpi.ifciltd.co
m), where they are examined and appraised by the PMA within a defined timeline. Upon successful
submission, a unique Application ID is issued for all future correspondence. A web-based MIS system is
used for continuous online monitoring of project progress and for taking interim corrective measures,
where required.
Transformational Impact of PLISFPI: Strengthening Manufacturing, MSMEs, and Global
Competitiveness
The scheme has facilitated the adoption of advanced technologies and the establishment of multiple
production lines. It has resulted in the creation of 34 lakh MT per annum of processing and preservation
capacity as of February 2026.
PLISFPI has also attracted strong industry participation and investment:
A total of 165 applications has been approved by the Ministry of Food Processing Industries
across various categories.
These approvals correspond to 274 project locations.
Beneficiaries have reported investments amounting to ₹9,207 crore under the scheme.
Incentives worth ₹2,162.55 crore have been disbursed as of February 2026.
Overall, these outcomes underscore the scheme’s effectiveness in catalysing capacity expansion,
mobilising private investment, and strengthening the technological and operational capabilities of India’s
food processing sector.The scheme has also played a significant role in promoting MSMEs. Out of the 165 approved
applications, 69 applicants are MSMEs (as of February 2026). Additionally, 40 contract manufacturing
units associated with the main approved applicants fall within the MSME category, indicating their
integration across the value chain. Furthermore, incentives amounting to ₹13.266 crore have been
disbursed to 20 eligible MSMEs as of 28 February 2025.
This expansion in capacity and investment has translated into substantial employment generation.
Around 3.39 lakh direct and indirect jobs have been created by February 2026, far surpassing the
scheme’s target of 2.5 lakh jobs by 2026-27.
In addition, PLISFPI has contributed to strengthening India’s presence in global processed food markets:
Exports of agricultural processed food products approved under the scheme have grown at a
Compound Annual Growth Rate (CAGR) of 13.23% as on 2024-25, with reference to 2019-20.
The cumulative export sales of PLISFPI beneficiaries reached ₹89,053.44 crore during the
period from FY April, 2021 to FY September, 2025.
Conclusion
The Production-Linked Incentive Scheme for the Food Processing Industry (PLISFPI) has emerged as a
key driver of growth in India’s food processing sector. By linking incentives to increased sales, it has
encouraged investment, expanded production capacity, and strengthened the global presence of Indian
food products. Its emphasis on value addition, MSME participation, and millet-based products has
contributed to inclusive growth.
The scheme has also strengthened the connection between agriculture and industry and generated
employment across the value chain. Collectively, these outcomes position PLISFPI as a strong
foundation for building a more competitive, resilient, and inclusive food processing ecosystem in the
country.
References
Ministry of Finance
https://www.indiabudget.gov.in/economicsurvey/doc/echapter.pdf
Ministry of Commerce & Industry
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2086811®=3&lang=2Ministry of Food Processing Industries
https://www.mofpi.gov.in/en/PLISFPI/central-sector-scheme-production-linked-incentive-scheme-f
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https://sansad.in/getFile/loksabhaquestions/annex/184/AU3237_vgjNlp.pdf?source=pqals#:~:text=
Annexure%2DI.,2025
PIB Backgrounders
https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=155082&ModuleId=3®=3&lang=2
https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=154063&ModuleId=3®=3&lang=2
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