Food processing PLI scheme surpasses investment, employment targets

The PLI scheme for the food processing industry has surpassed its investment and employment targets, with ₹9,207 crore invested and 3.35 lakh jobs created. The scheme has also boosted processing capacity and sales, said Minister Chirag Paswan.

The Production Linked Incentive Scheme for the food processing industry has exceeded its committed investment and employment targets, with approved companies investing ₹9,207 crore and generating around 3.35 lakh direct and indirect jobs, the government informed Parliament on Thursday.

Replying to a question in the Lok Sabha, Food Processing Industries Minister Chirag Paswan said the scheme has attracted investments above the committed level of ₹7,722 crore, while employment generation has surpassed the target of 2.5 lakh. The government said investments under the scheme have created food processing capacity of 34 lakh metric tonnes per annum, while sales of PLI-supported products increased from ₹58,758 crore in FY20 to ₹1,08,854 crore in FY26, reflecting expansion in domestic processing and value addition. The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), with an approved outlay of ₹10,900 crore for the period from FY22 to FY27, aims to promote domestic processing and value addition, support the creation of global food manufacturing champions, strengthen Indian food brands in overseas markets and generate employment.

Scheme Implementation and Coverage

According to the minister, 163 applications from 127 companies, including 69 micro, small and medium enterprises (MSMEs), are currently covered under the scheme across 22 states and 212 locations. Incentives amounting to ₹3,271.44 crore had been disbursed up to June 2026.

Support for Exports and Innovation

To strengthen exports, the scheme provides financial support for branding and marketing of Indian food products abroad, with incentives of 50 per cent of eligible expenditure, subject to prescribed limits. It also supports adoption of modern processing, packaging and manufacturing technologies and includes a dedicated category for small and medium enterprises engaged in innovative and organic food products.

Broader Support for Micro Enterprises

The minister also said the government continues to support the food processing ecosystem through the Prime Minister Formalisation of Micro Food Processing Enterprises (PMFME) Scheme, which provides credit-linked capital subsidy, technology upgradation, common infrastructure, branding support and entrepreneurship training to improve value addition and export readiness of micro food processing enterprises.

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