India’s Food Processing Sector Receives Major Boost with PLI Scheme
The Ministry of Food Processing Industries (MoFPI) has announced a significant development in the food processing sector, revealing that 169 applications have been approved under the Production Linked Incentive scheme (PLISFPI). This initiative has facilitated a remarkable cumulative investment of approximately ₹9,207 crore from the approved applicants nationwide.
As of now, the total incentives disbursed to eligible beneficiaries under this scheme stand at nearly ₹2,162.55 crore. This initiative has not only enhanced the processing capabilities of the food sector, creating around 35 lakh metric tonnes per annum in processing and preservation capacity, but it has also led to the generation of approximately 3.39 lakh jobs—spanning both direct and indirect employment.
Supporting Indian Food Brands Globally
The PLISFPI aims to promote Indian food brands on the international stage. The government offers financial incentives to aid branding and marketing efforts for Indian-branded consumer food products seeking to penetrate global markets. Under this scheme, applicants can claim reimbursements of 50% of their branding and marketing expenditures abroad, with a limit set at 3% of their annual food product sales or ₹50 crore per year, whichever is less.
Furthermore, the export of agricultural processed food products under the PLISFPI is witnessing an impressive compound annual growth rate (CAGR) of 13.23% for the period from 2019-20 to 2024-25, indicating robust growth in this sector.
Expert Oversight for Compliance
To ensure the effective implementation of the PLISFPI, MoFPI has appointed the Industrial Finance Corporation of India (IFCI) Limited as a Project Management Agency (PMA). This agency will evaluate and appraise proposals, scrutinize incentive claims from approved applicants, and conduct thorough inspections. They will review invoices, obtain Statutory Auditors’ certificates certifying sales, and ensure compliance with GST filings and Chartered Engineers’ evaluations. Additionally, detailed Standard Operating Procedures (SOPs) have been established to maintain minimum sales and investment thresholds necessary for claiming PLI incentives.
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