The Production-Linked Incentive (PLI) Scheme for the Food Processing Industry has emerged as a key driver of growth in India’s food processing sector. By linking incentives to increased sales, it has encouraged investment, expanded production capacity, and strengthened the global presence of Indian food products. Its emphasis on value addition, MSME participation, and millet-based products has contributed to inclusive growth.

 

The PLI Scheme was launched in April 2020 to boost domestic manufacturing capabilities by offering financial incentives to eligible companies based on their incremental sales. With an outlay of 10 thousand 900 crore rupees, the scheme is being implemented from 2021-22 to 2026-27. The scheme seeks to generate processed food output of more than 33,400 crore rupees and create employment for nearly 2.5 lakh persons by the year 2026-27.  

 

As of February 2026, a total of 165 applications have been approved by the Ministry of Food Processing Industries across various categories. These approvals correspond to 274 project locations. The ministry stated that the beneficiaries have reported investments amounting to more than 920 crore under the scheme. The government has disbursed incentives worth 2000 crore rupees. Around 3.39 lakh direct and indirect jobs have been created by surpassing the scheme’s target of 2.5 lakh jobs by 2026-27.

 

The scheme has also strengthened the connection between agriculture and industry and generated employment across the value chain. Collectively, these outcomes position PLISFPI as a strong foundation for building a more competitive, resilient, and inclusive food processing ecosystem in the country.