Revolutionizing Taste: ₹7,000 Crore Boost for Indian Food Processing

The Indian food processing industry has been invigorated by a significant investment of ₹7,000 crore under the Production Linked Incentive (PLI) Scheme. This move is a part of the government’s comprehensive strategy to foster growth in this sector, which plays a vital role in India’s economy. The following details provide a more in-depth look at the impact and components of this investment:

Overview of the PLI Scheme

  1. Scheme Launch and Budget: The PLI Scheme for Food Processing Industry (PLISFPI) was approved by the Union Cabinet on March 31, 2021, with a budget of ₹10,900 crores, to be implemented over five years, from 2021-22 to 2026-27​​.
  2. Components of the Scheme: The scheme consists of three primary components:
    • Incentivizing manufacturing in four major food product segments.
    • Promoting innovative/organic products of SMEs.
    • Supporting branding and marketing abroad for Indian brands.
  3. PLI Scheme for Millet-based Products: Launched in FY 2022-23, this scheme, with an outlay of ₹800 crore, focuses on promoting millets as sustainable grains and is part of the broader PLISFPI initiative​​.

Impact and Progress

  1. Employment Creation: As of September 2023, the scheme has led to the creation of employment for 2,37,335 persons across various companies in India​​.
  2. State-wise Company Distribution: The scheme has a broad national footprint, with significant numbers of companies in states like Maharashtra, Gujarat, and Delhi, among others​​.
  3. International Branding Incentives: Companies receive 50% financial incentives for expenditure on international branding, encouraging the global presence of Indian food brands​​.

Economic Contributions

  1. Export Growth: The export of processed-food products increased from US$ 8.56 billion in 2020-21 to US$ 10.42 billion in 2021-22​​.
  2. FDI Attraction: During 2021-22, the food processing sector attracted US$ 709.72 million of Foreign Direct Investment (FDI)​​.

Scheme Coverage and Eligibility

  1. Food Product Segments: The scheme covers various segments like Ready to Eat/Cook, Fruits & Vegetables, Marine products, and Mozzarella Cheese​​.
  2. Eligibility Criteria: Applicants engaged in manufacturing food products in India and selling such products covered under the target segments are eligible for the scheme​​.

Promotion of Indian Brands

  1. Branding and Marketing Support: The scheme extends incentives for the promotion of Indian brands abroad, focusing on developing a market for all Indian food products in branded consumer packs​​.


This investment under the PLI Scheme represents a pivotal step in enhancing the capacity, innovation, and global reach of India’s food processing industry. The scheme’s multifaceted approach, encompassing manufacturing, branding, and international marketing, positions India as a significant player in the global food processing sector. The initiative not only boosts the economy but also creates substantial employment opportunities, thereby benefiting a wide array of stakeholders in the industry.



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