New Delhi, April 21: The Government on Tuesday highlighted significant gains under the Production-Linked Incentive Scheme for the Food Processing Industry, stating that the initiative has strengthened India’s food processing ecosystem through increased investments, higher production capacity, and job creation.
According to an official statement issued to Ziraat Times, the scheme—launched in 2021 with an outlay of ₹10,900 crore and set to run till 2026-27—aims to create globally competitive Indian food manufacturing champions by incentivising incremental sales and promoting branding abroad.
As of February 2026, a total of 165 applications have been approved under the scheme, covering 274 project locations across the country. Beneficiaries have received incentives amounting to ₹2,162.55 crore, while investments to the tune of ₹9,207 crore have been reported.
The government said the scheme has led to the creation of approximately 3.39 lakh direct and indirect jobs, surpassing the initial employment target of 2.5 lakh set for 2026-27. In addition, food processing and preservation capacity has expanded by 34 lakh metric tonnes per annum.
Officials noted that the scheme has also contributed to enhancing India’s export performance in processed food products. Exports of agricultural processed food items have recorded a compound annual growth rate (CAGR) of 13.23% in 2024-25 compared to 2019-20, with cumulative export sales of beneficiaries reaching ₹89,053.44 crore between April 2021 and September 2025.
The Production Linked Incentive Scheme framework, under which PLISFPI operates, was introduced in 2020 to boost domestic manufacturing and improve global competitiveness across key sectors. The food processing scheme is aligned with broader initiatives such as Atmanirbhar Bharat and Make in India.
The PLISFPI is structured around three components: incentivising manufacturing in key food segments such as ready-to-eat products, processed fruits and vegetables, marine products, and mozzarella cheese; promoting innovative and organic products by MSMEs; and supporting global branding and marketing of Indian food products.
A dedicated component for millet-based products was also introduced in 2022-23 with an outlay of ₹800 crore to encourage value addition and promote millet consumption.
The government said the scheme has seen strong participation from micro, small and medium enterprises (MSMEs). Of the 165 approved applicants, 69 are MSMEs, with additional MSME participation through contract manufacturing units integrated into the value chain. Incentives have also been disbursed to eligible MSMEs to support their growth.
Implementation of the scheme is being carried out through the Industrial Finance Corporation of India Limited, which acts as the Project Management Agency, overseeing application processing, monitoring, and evaluation through an online system.
The government emphasised that PLISFPI has facilitated the adoption of advanced technologies, expansion of production lines, and improved integration with global value chains. It has also strengthened linkages between agriculture and industry by promoting value addition and reducing post-harvest losses.
India’s food processing sector has seen steady growth over the past decade, with Gross Value Added (GVA) rising from ₹1.34 lakh crore in 2014-15 to ₹2.24 lakh crore in 2023-24. The share of processed food exports in total agricultural exports has also increased from 13.7% to 20.4% during this period.
Concluding, the government said the scheme has emerged as a key driver in building a more competitive, resilient, and inclusive food processing ecosystem, while enhancing India’s position in global markets.
