Back To Blog

PLI Scheme in the Food Processing Sector of India

March, 2023

PLI stands for Product Linked Incentive Scheme, a government initiative aimed at encouraging manufacturing and production in India by providing financial incentives to companies. In the food processing sector, the PLI scheme was announced in 2021 as a part of the government’s Atmanirbhar Abhiyan or a self-reliant India campaign. The PLI scheme for the food processing industry, with an outlay of Rs. 10,900 crores were approved on March 2021, to be implemented for a period of 7 years till 2026-27.

Under the PLI scheme for the food processing sector, eligible companies are offered financial incentives ranging from 5% to 10% of their incremental sales over the base year of 2019-20. The scheme is designed to cover several food processing segments such as ready- to-eat foods, processed fruits and vegetables, marine products, poultry meat, and mozzarella cheese, among others.

The scheme aims to boost the competitiveness of the Indian food processing industry by encouraging investments in modernization, capacity expansion, and adopting new technologies. It is expected to promote the creation of a more robust supply chain infrastructure, generate employment, and enhance export potential.

Overall, the PLI scheme is expected to provide a significant boost to the food processing sector in India, which has been identified as a key growth area for the country's economy. The scheme is expected to attract both domestic and foreign investments and improve the overall competitiveness of the sector.