Updated on March 06, 2025 01:44:52 PM
The Production Linked Incentive (PLI) Scheme for the Food Processing and Products Industry will turn the country into a production powerhouse for world-class processed food products. The PLI Scheme for Food Processing and Products Industry focuses on economies of scale as it seeks to raise output of a range of foods whilst at the same time enhancing local technological capacities in food manufacturing. The PLI Scheme for Food Processing and Products Industry reduces import reliance as well as promotes value-addition within India, thereby attracting domestic and foreign investment, including human talent. The PLI Scheme for Food Processing and Products Industry initiative will not only help in developing the status of India in the food markets around the globe but also in boosting the technological efficiency of the food processing sector of the country and thus will help in increasing the status of India in the food supply chain of the world in premium products.
The Production Linked Incentive (PLI) Scheme for Food Processing and Products Industry is designed to increase production capacity of several high-value industries, value-added, or industries considered critical to food processing. The PLI Scheme for Food Processing and Products Industry was planned and designed as a rigorous structural plan to unbundle the nation’s supply vulnerability and bolt India into the international manufacturing and export map for food items. Rewarding performance through incentives, the PLI Scheme for Food Processing and Products Industry fosters increased manufacture and application of new technologies as well as the integration of best practices from around the world. As a result of the PLI Scheme for Food Processing and Products Industry, the opportunities for competition in the international market within this sector are enhanced in India. Furthermore, the PLI Scheme for Food Processing and Products Industry helps in promoting complex food processing technologies, uplifts India’s position in the value chain, creates employment opportunism and empowers India as a leading exporter in the food processing sector.
The Production Linked Incentive (PLI) Scheme for Food Processing and Products Industry offers several benefits to India’s manufacturing sector:
The eligibility for PLI Scheme for Food Processing and Products Industry includes a range of applicants to ensure broad participation across the sector and the required eligibility criteria that entities must meet is:
The Production Linked Incentive (PLI) Scheme for Food Processing and Products Industry offers structured incentives based on category, manufacturing, innovation and marketing of the food products:
| Product Segment | Description | Incentive Purpose |
|---|---|---|
| Ready to Cook / Ready to Eat (RTC / RTE) | Includes millet-based foods and other ready-to-eat or cook products | To scale up production to meet increasing domestic and global demand |
| Processed Fruits & Vegetables | Covers processed fruits, vegetables, and value-added food products | To support production, enhance value addition, and improve quality |
| Marine Products | Focuses on processed marine foods | To boost production and enhance export quality |
| Mozzarella Cheese | Cheese production with emphasis on mozzarella | To scale up local manufacturing and meet quality standards |
| Product Segment | Description | Incentive Purpose |
|---|---|---|
| All major food product segments (RTC/RTE, etc.) | Includes RTC/RTE, Processed Fruits & Vegetables, Marine Products, and Mozzarella Cheese for SMEs | To encourage SME production of innovative and organic products |
| Free Range - Eggs, Poultry Meat & Egg Products | Organic and free-range poultry products, eggs, and egg-based products |
| Support Type | Description | Incentive Purpose |
|---|---|---|
| Export Marketing and Brand Promotion | Assistance for Indian food brands to establish and promote themselves in international markets | To strengthen Indian food brands abroad and improve export competitiveness |
The duration of the Production Linked Incentive (PLI) Scheme for Food Processing and Products Industry is proposed for INC-6 of six years’ duration from FY 2021-22 to FY 2026-27. Under the PLI Scheme for Food Processing and Products Industry, the incentive will be earned in the subsequent year for the amount earned for any given year. Therefore, the incentive of PLI Scheme for Food Processing and Products Industry accruing for activities in the terminal scheme year of FY 2026-27, shall be paid in FY 2027-28. This timeline is designed to provide a constant flow of support through PLI Scheme for Food Processing and Products Industry for the food processing Industry in India so the growth is not timely and can sustain investment inflow and competition to other countries for Indian food products for a long duration.
The Production Linked Incentive (PLI) Scheme for Food Processing and Products Industry is a revolutionary policy to bring India at the forefront of the food processing business. Through boosting production volumes, technology adoption and investment, domestic and foreign; the PLI Scheme for Food Processing and Products Industry helps to cut on the import dependence while promoting value addition within India. Focusing on manufacturing, innovation and branding, PLI Scheme for Food Processing and Products Industry assists in promotion of Indian exports and raises the standards of Indian food brands. Also, the PLI Scheme for Food Processing and Products Industry focuses on infrastructures; this has a positive impact on job creation and increases the development of farm income in rural areas. On balance, the PLI Scheme for Food Processing and Products Industry strategic program enhances the competitiveness of the Indian food sector in the global value chain helping the sector to attain competitiveness at the international level.
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The benefits of the PLI Scheme for Food Processing and Products Industry include strengthening infrastructure, enhancing export, promoting domestic manufacturing, attracting investments, and generating employment opportunities.
The PLI Scheme for Food Processing and Products Industry is a scheme to boost the capacity of food industries in India by increasing cost-efficiency, use of technology, diversifying imports and enhancing India’s market position in the global food market.
The eligibility criteria for the PLI Scheme for Food Processing and Products Industry include proprietary firms, partnership firms, LLPs, companies registered in India, cooperatives, and small & medium enterprises (SMEs).
The goals of PLI Scheme for Food Processing and Products Industry includes the encouragement of manufacturing of processed food products, decrease import of processed foods, and upgrade the technological capability of food processing sector.
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