The Production-Linked Incentive Scheme for Food Processing Industries (PLISFPI), with an outlay of ₹10,900 crore, has exceeded its employment targets while driving investment, export growth, and processing capacity expansion.
As of February 2026, the scheme has demonstrated transformational impact, facilitating investments of ₹9,207 crore and creating a processing capacity of 34 lakh MT per annum. Originally designed to create 2.5 lakh jobs, the scheme has already surpassed its goal by generating 3.39 lakh direct and indirect jobs.
The scheme is structured across three categories: support for large food segments such as ready-to-eat (RTE) and marine products, incentives for MSMEs in innovative and organic food products, and financial support for branding and marketing in international markets.
A dedicated sub-component for millet-based products, with an ₹800 crore outlay, aims to promote climate-resilient and value-added food production.
These interventions have contributed to export growth, with processed food now accounting for 20.4 percent of India’s agricultural exports. The scheme reflects a broader shift toward value-added agriculture and export-oriented food manufacturing.
Key Performance Metrics
Investment Mobilised: ₹9,207 crore committed under the scheme.
Employment Creation: 3.39 lakh jobs generated, exceeding the 2.5 lakh target.
Processing Capacity: 34 lakh MT per annum added.
Export Performance: ₹89,053 crore cumulative exports by beneficiaries (Apr 2021–Sep 2025).
Growth Rate: Total export of agricultural processed food has grown at a CAGR of 13.23% compared to 2019-20.
MSME Participation: 69 MSMEs approved, with 40 additional units in contract manufacturing.
Sector Expansion: The Gross Value Added (GVA) of the sector rose from ₹1.34 lakh crore in 2014-15 to ₹2.24 lakh crore in 2023-24.
Policy Relevance
Strengthens Farm-to-Market Linkages: Scaling processing capacity creates stable demand for agricultural produce and reduces post-harvest losses.
Builds Export-Oriented Manufacturing: Incentives tied to production and branding help shift India from bulk exports to value-added global food markets.
Deepens MSME Integration: Dedicated scheme components ensure smaller firms participate in high-growth food processing value chains.
Promotes Climate-Resilient Crops: Millet-focused incentives align with sustainable agriculture and nutrition strategies.
Stabilises Agro-Industrial Growth: Rising GVA indicates food processing is emerging as a consistent and scalable manufacturing segment.
Relevant Question for Policy Stakeholders: With employment and capacity targets already exceeded, how should MoFPI prioritise the next phase of PLISFPI to address cold chain gaps and reduce post-harvest losses?
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