PLISFPI Enhances Food Processing Sector with Rs 2,162 Crore in Incentives and Job Creation
Synopsis
The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) has made remarkable strides in expanding food processing capacity and creating jobs, with beneficiaries receiving over Rs 2,162 crore in incentives. This initiative is set to boost India's food exports significantly.
Key Takeaways
PLISFPI has allocated Rs 2,162.55 crore in incentives to enhance the food processing sector.
34 lakh MT per annum increase in food processing capacity.
Created about 3.39 lakh jobs , exceeding the target of 2.5 lakh.
69 approved applicants are MSMEs, indicating strong support for small businesses.
Initiative aims for processed food output of Rs 33,494 crore .
New Delhi, April 21 (NationPress) The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) has significantly contributed to enhancing capacity in food processing, generating employment opportunities, and boosting exports, with beneficiaries receiving an impressive total of Rs 2,162.55 crore, the government announced on Tuesday.
The capacity for food processing and preservation has risen by 34 lakh MT annually, according to an official release, underscoring the scheme's positive effects.
A total of 165 applications have been sanctioned, covering 274 project sites, which have collectively attracted investments of Rs. 9,207 crore and created approximately 3.39 lakh direct and indirect jobs, surpassing the employment target of 2.5 lakh.
The initiative has also been beneficial for MSMEs, with 69 out of the 165 approved applicants being from this sector. Moreover, 40 contract manufacturing units linked to the primary approved applicants are categorized as MSMEs, demonstrating their role throughout the value chain.
Incentives totaling Rs 13.26 crore were allocated to 20 eligible MSMEs, as noted in the statement.
With a budget of Rs 10,900 crore, PLISFPI is set to run from 2021-22 to 2026-27 and aims to achieve a processed food output of Rs 33,494 crore.
India’s food processing sector has displayed consistent growth in recent years, with Gross Value Added (GVA) escalating from Rs 1.34 lakh crore in 2014-15 to Rs 2.24 lakh crore in 2023-24, based on initial revised estimates.
Its expanding global presence is illustrated by the rise in the share of processed food exports within agricultural exports, which increased from 13.7 percent in 2014-15 to 20.4 percent in 2024-25.
Thanks to savings from PLISFPI, a new initiative—the Production Linked Incentive Scheme for Millet-Based Products—was established in FY23 with a budget of Rs 800 crore to promote millets in convenient cooking and ready-to-eat food options.
The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) aims to enhance manufacturing, foster innovation among SMEs, and bolster the global branding of Indian food products.
Point of View
The PLISFPI is a commendable initiative that aligns with the government's goals of enhancing the food processing industry. By creating jobs and increasing export potential, it supports economic growth while empowering small and medium enterprises, thereby fostering a resilient and innovative sector.
NationPress
1 May 2026
Frequently Asked Questions
How much incentive has been disbursed under PLISFPI?
Beneficiaries have received a total incentive of Rs 2,162.55 crore under the PLISFPI.
How many jobs has PLISFPI created?
PLISFPI has created approximately 3.39 lakh direct and indirect jobs.
What is the budget for PLISFPI?
The total outlay for PLISFPI is Rs 10,900 crore, running from 2021-22 to 2026-27.
How has PLISFPI impacted MSMEs?
69 of the 165 approved applicants under PLISFPI are MSMEs, showing strong support for this sector.
