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.