India’s food processing sector is witnessing a strong transformation, with the Production-Linked Incentive Scheme for the Food Processing Industry (PLISFPI) emerging as a key driver of growth, investment, and employment. Backed by an outlay of ₹10,900 crore, the scheme is helping position India as a global hub for processed food manufacturing while strengthening the link between agriculture and industry.
Launched in 2021, PLISFPI aims to boost domestic manufacturing, incentivise incremental sales, and promote Indian food brands globally. The scheme, which runs till 2026-27, is already delivering measurable outcomes across capacity expansion, job creation, and export growth.
Strong Growth in Capacity, Jobs and Investment
According to the Ministry of Food Processing Industries, 165 applications have been approved under the scheme, covering 274 project locations across the country. Beneficiaries have collectively invested over ₹9,200 crore, while incentives worth ₹2,162.55 crore have been disbursed so far.
The impact on employment has been particularly notable. Around 3.39 lakh direct and indirect jobs have been created as of February 2026 – well above the initial target of 2.5 lakh jobs by 2026-27.
The scheme has also significantly enhanced processing capacity, adding 34 lakh metric tonnes per annum in food processing and preservation. This expansion is helping reduce wastage, improve value addition, and strengthen supply chains.
Boosting Exports and Global Presence
India’s processed food exports have also gained momentum under PLISFPI. Exports of agricultural processed food products have grown at a compound annual growth rate (CAGR) of 13.23% in 2024-25 compared to 2019-20.
Cumulative export sales by PLISFPI beneficiaries have reached over ₹89,000 crore between April 2021 and September 2025, reflecting the growing global demand for Indian food products.
The share of processed food in India’s agricultural exports has increased from 13.7% in 2014-15 to 20.4% in 2024-25, indicating a steady shift towards value-added products.
Focus on Innovation, MSMEs and Branding
PLISFPI is structured around three key components – supporting large-scale manufacturing, encouraging innovation among MSMEs, and promoting global branding of Indian food products.
Out of the approved applications, 69 belong to MSMEs, highlighting the scheme’s inclusive approach. Additionally, 40 contract manufacturing units linked to the scheme are also part of the MSME ecosystem.
To strengthen global competitiveness, the scheme provides financial support for branding and marketing abroad, covering up to 50% of expenses. This is helping Indian brands secure shelf space in international markets and build global recognition.
A dedicated sub-scheme for millet-based products, introduced in 2022-23 with an outlay of ₹800 crore, is also promoting the use of nutritious grains in ready-to-eat and ready-to-cook food segments.
Strengthening the Food Processing Ecosystem
India’s food processing sector has seen steady growth over the past decade, with Gross Value Added (GVA) rising from ₹1.34 lakh crore in 2014-15 to ₹2.24 lakh crore in 2023-24.
With India being the world’s second-largest producer of fruits and vegetables, the sector holds immense potential. Government initiatives like PLISFPI are aimed at improving scale, productivity, and integration with global value chains to unlock this potential.
A Foundation for Future Growth
By linking incentives to performance, PLISFPI has encouraged companies to expand production, adopt advanced technologies, and explore new markets. It has also strengthened the role of MSMEs and enhanced employment across the value chain.
As India moves towards its goal of becoming a developed economy, the scheme is expected to play a crucial role in building a competitive, resilient, and inclusive food processing ecosystem – one that not only supports farmers and industry but also strengthens the country’s position in global food markets.
