India’s PLI Scheme Drives Growth in Food Processing Sector
The Ministry of Food Processing Industries has launched the Production Linked Incentive (PLI) Scheme, a significant initiative dedicated to revitalizing India’s food processing sector. With a financial commitment of ₹10,900 crore, the scheme aims to bolster domestic brands in international markets while fostering new leaders in global food manufacturing. The program will be in effect for six years, spanning from FY 2021–22 to FY 2026–27, with an emphasis on increasing production capacity, creating job opportunities, particularly in rural areas, and enhancing value addition in the food industry.
Key Focus Areas of the Scheme
The PLI Scheme targets four primary segments of food products. These include Ready to Cook and Ready to Eat (RTC/RTE) items, processed fruits and vegetables, marine products, and mozzarella cheese. Additionally, the scheme promotes the production of innovative and organic products by small and medium enterprises (SMEs). It also extends support for branding and marketing Indian products overseas, ensuring that brands establish a robust presence on global platforms.
In a noteworthy alignment with the International Year of Millets, the Ministry encourages the inclusion of millets in RTC/RTE products under the PLI Scheme. This initiative aims to not only enhance the usage of millets but also boost the value and sales of related food items.
Impact on Industry Participation and Employment
Since its launch, the PLI Scheme has approved 128 companies, facilitating the establishment of 274 operational units across the country. It has particularly bolstered participation from the MSME sector, with 68 applicants and 40 contract manufacturing units receiving supportive measures. This underscores the scheme’s inclusive approach, strengthening the entire food processing value chain by catering to both large corporations and smaller enterprises.
Financial Performance and Capacity Growth
The investment performance under the PLI Scheme has been remarkable. As of now, a cumulative investment of ₹9,207 crore has been recorded against a committed investment of ₹7,722 crore, reflecting the willingness of companies to invest beyond their initial promises. Furthermore, approximately 34 lakh metric tonnes per annum of processing capacity has been established, generating around 3.29 lakh new jobs, encompassing both direct and indirect employment opportunities.
Millet-Based Products on the Rise
Thanks to the initiatives under the PLI, sales of millet-based products soared from ₹345.73 crores in FY 2022-23 to an estimated ₹1,845.25 crores by FY 2024-25. The procurement of millets has also seen a dramatic rise, jumping from 1,103.18 metric tonnes to 17,089.16 metric tonnes, marking a fifteen-fold increase.
Promoting Indian Brands Globally
The scheme has catalyzed growth in both sales and exports of supported products, with value-added offerings like RTC/RTE foods, processed fruits and vegetables, marine products, and mozzarella cheese attracting significant attention. A critical takeaway is that the PLI Scheme ensures complete value addition of manufactured products occurs within India, enriching the domestic manufacturing landscape, increasing farmers’ incomes, and enhancing the farm-to-fork value chain.
Additionally, the branding and marketing element of the scheme empowers Indian food products to gain traction in international markets, helping India solidify its position as a key player in the global processed food sector.
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