PLI Scheme for Food Processing Delivers Strong Gains: Investments, Jobs, and Surge in Millet-Based Products

The Government of India's Production Linked Incentive (PLI) Scheme for Food Processing Industry is emerging as a transformative force in strengthening the country's food processing ecosystem, driving investments, boosting exports, and positioning India as a global hub for value-added food products.

Launched by the Ministry of Food Processing Industries (MoFPI) with a total outlay of ₹10,900 crore, the scheme is being implemented over six years from FY 2021–22 to FY 2026–27. It aims to enhance value addition, expand processing capacity, promote Indian brands globally, and generate large-scale employment, particularly in rural and off-farm sectors.

Strong Industry Participation Across Segments

The scheme has witnessed robust industry response, with 128 companies approved covering 274 manufacturing units across the country. Notably, the initiative has ensured deep participation from the MSME sector, with 68 MSME beneficiaries and 40 contract manufacturing units, reflecting its inclusive design.

The scheme is structured around three key components:

• Incentives for Key Food Segments: Including Ready-to-Cook/Ready-to-Eat (RTC/RTE) foods, processed fruits and vegetables, marine products, and mozzarella cheese

• Support for Innovative and Organic Products: Focused on SMEs and emerging food categories

• Branding and Marketing Abroad: Enabling Indian companies to expand global presence through in-store branding, shelf space, and international promotion

In line with the Government's push for nutri-cereals, millets have been actively integrated into RTC/RTE categories under the scheme, especially following the declaration of 2023 as the International Year of Millets.

Investment Outperforms Commitments

The scheme has exceeded expectations in terms of investment mobilization. Against a committed investment of ₹7,722 crore, actual investments have reached ₹9,207 crore across 22 States, demonstrating strong industry confidence and accelerated capacity creation.

As a result, the scheme has enabled the addition of approximately 34 lakh metric tonnes per annum of food processing and preservation capacity, significantly strengthening India's agri-processing infrastructure.

Employment Generation and Rural Impact

One of the key achievements of the scheme is its impact on employment. It has generated approximately 3.29 lakh jobs, including both direct and indirect employment, with a substantial share in rural and semi-urban areas.

By promoting value addition within India, the scheme is also enhancing farm incomes, reducing post-harvest losses, and strengthening the farm-to-fork value chain.

Growth in Sales, Exports, and Value-Added Products

The performance of PLI-supported products has been encouraging despite global economic challenges:

• Overall sales growth: CAGR of 10.58%

• Export growth: CAGR of 7.41%

High-growth segments include RTC/RTE foods, processed fruits and vegetables, marine products, mozzarella cheese, and millet-based products—indicating rising domestic and global demand for value-added Indian food products.

Millet Revolution Gains Momentum

A standout success of the scheme has been the rapid growth of millet-based products:

• Sales increased from ₹345.73 crore (FY 2022–23) to ₹1,845.25 crore (FY 2024–25)

• Procurement surged nearly 15 times, from 1,103 MT to 17,089 MT

This reflects the growing acceptance of millets as nutritious, climate-resilient crops and their successful integration into modern food products.

Boost to Global Branding of Indian Food Products

Through its branding and marketing component, the scheme is enabling Indian food companies to secure global shelf space, invest in brand-building, and expand exports. This is significantly enhancing the international visibility of Indian food brands and supporting the emergence of global food manufacturing champions.

Driving Atmanirbhar Bharat in Food Processing

A key feature of the scheme is its emphasis on domestic value addition, ensuring that production, processing, and manufacturing activities take place within India. This not only strengthens local industry but also reduces import dependence and enhances competitiveness.

The scheme has also catalyzed technology upgradation and modernization of food processing units, improving quality standards and productivity.

Towards a Global Food Processing Hub

With strong investment inflows, rising production capacity, growing exports, and increasing participation from MSMEs, the PLI Scheme for Food Processing is playing a pivotal role in transforming India's agri-food landscape.

Aligned with the Government's broader vision of Atmanirbhar Bharat and Viksit Bharat, the scheme is helping:

• Increase value addition in agriculture

• Reduce post-harvest losses

• Strengthen rural economies

• Position India as a global leader in processed food exports

As the scheme progresses toward its final phase in 2026–27, it is expected to further accelerate growth, innovation, and global competitiveness in India's food processing sector.