The Production Linked Incentive (PLI) Scheme for the Food Processing Industry (FPI) has emerged as a transformative initiative, generating over 2.89 lakh jobs by October and attracting investments of Rs 8,910 crore across 213 locations, according to the Ministry of Food Processing Industries.

Under the scheme, micro, small, and medium enterprises (MSMEs) play a notable role, with 70 MSMEs directly enrolled and 40 others contributing as contract manufacturers for larger firms. These efforts have bolstered SMEs by driving innovation, enhancing competitiveness, expanding market reach, and supporting the broader food processing value chain.

The PLI scheme extends its support to large companies, millet-based products, organic and innovative offerings, and SMEs while promoting Indian brands globally. A key feature is the requirement to use domestically grown agricultural produce (excluding additives, flavours, and edible oils) in manufacturing, which has substantially boosted local procurement, aiding farmers and uplifting rural and underdeveloped regions.

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The scheme’s emphasis on local raw material production has not only supported agricultural incomes but also created substantial off-farm employment, driving rural economic development. Financial incentives are provided to encourage Indian food brands in global markets, covering up to 50% of branding and marketing expenses abroad, with a cap of 3% of annual sales or Rs 50 crore per year, whichever is lower. Applicants must invest at least Rs 5 crore over five years to qualify.

Currently, 73 beneficiaries are availing of this component, further advancing India’s footprint in the global food processing arena, as per the ministry’s release.

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