India's ₹10,900 crore production-linked incentive (PLI) scheme for food processing has attracted significant investment interest, with companies exceeding their initial commitments. According to reports from Mint, against a committed investment of ₹7,722 crore, a cumulative investment of ₹9,207 crore has been made under the scheme across 22 states. The scheme has generated 3.4 million tonnes per annum of processing and preservation capacity and created direct and indirect employment for around 329,000 people. Around 128 companies have been approved under the scheme, covering 274 units across the country, with strong participation from 68 MSME applicants and 40 contract manufacturing units. As per Global Agriculture, the scheme has also ensured strong participation from the MSME sector, with 68 MSME applicants and 40 contract manufacturing units being supported, reflecting its inclusive nature.
The scheme has demonstrated positive impact on revenue growth and export performance. As reported by Mint, the sale of PLI products increased by CAGR of 10.58% from ₹62,496 crore in 2019-20 to ₹103,339 crore in 2024-25. Similarly, export sales increased by 7.41% from ₹13,789 crore in 2019-20 to ₹19,717 crore in 2024-25. According to Global Agriculture, the sale of PLI products has shown significant growth despite challenging macroeconomic factors. The scheme has also contributed to the growth in sales and exports of PLI-supported products, with value-added products such as RTC/RTE products, processed fruits and vegetables, marine products, mozzarella cheese, and millet-based products showing significant growth under the scheme. Importantly, the scheme has ensured that complete value addition of manufactured products is taking place within India, thereby supporting domestic manufacturing and enhancing farmers' incomes.
The scheme has demonstrated remarkable success in promoting millet-based products, with significant growth in both sales and procurement. As reported by Global Agriculture, the sale of millet-based products has increased from ₹345.73 crores in FY 2022-23 to ₹1,845.25 crores in FY 2024-25 due to interventions of the PLISFPI scheme. Similarly, procurement of millets has increased from ₹1,103.18 MT to ₹17,089.16 MT, representing a 15 times increase in procurement. This growth aligns with the declaration of 2023 as the International Year of Millets, with the Ministry taking the initiative to encourage the use of millets in RTC/RTE products and incentivizing them under the PLI Scheme to increase usage of millets in food products and promote value addition and sales.
There are early signs of improvement in value addition across several sectors, particularly in processed fruits and vegetables, marine products, mozzarella cheese and ready-to-eat foods. According to Mint reports, the scheme has created about 3.4 million tonnes per annum of processing and preservation capacity. By encouraging processing closer to farm-gate levels, the scheme has the potential to reduce post-harvest losses. However, the overall impact on wastage reduction remains gradual, as it depends on parallel improvements in infrastructure such as cold chains and logistics. As per Global Agriculture, the scheme has contributed to the growth in sales and exports of PLI-supported products, with value-added products such as RTC/RTE products, processed fruits and vegetables, marine products, mozzarella cheese, and millet-based products showing significant growth under the scheme.
Despite positive results, the scheme faces several structural challenges that could limit long-term success. As reported by Mint, India's food processing sector continues to face bottlenecks including inadequate cold chain infrastructure, fragmented supply chains, and gaps in logistics, storage, and processing technology. The long-term success will hinge on addressing these structural challenges and ensuring that benefits reach a broader segment of the industry, including smaller players and farmers. The scheme, being implemented for six years till FY26-27, seeks to create globally competitive food manufacturing champions while generating employment opportunities and improving value addition across the sector. According to Global Agriculture, the PLI Scheme has also supported branding and marketing of Indian food products under the branding and marketing component, enabling Indian brands to expand their presence in international markets and helping India emerge as a strong global player in the processed food sector.
