PLI scheme for food processing industry emerges as key driver of growth in India’s sector
- IBEF
- April 22, 2026
The Production-Linked Incentive (PLI) Scheme for the Food Processing Industry has emerged as a key driver of growth in India’s food processing sector by promoting investment, expanding production capacity and strengthening the global presence of Indian food products. The scheme links financial incentives to incremental sales, encouraging companies to scale up operations and enhance value addition across the supply chain. It has also played an important role in supporting Micro, Small and Medium Enterprises (MSMEs) and promoting innovative segments such as millet-based products, contributing to more inclusive and diversified sectoral growth.
The scheme, launched in April 2020 with an outlay of Rs. 10,900 crore (US$ 1.17 billion), is being implemented from 2021-22 to 2026-27. It aims to generate processed food output of over Rs. 33,400 crore (US$ 3.58 billion) and create employment for nearly 2.5 lakh persons by FY27. As of February 2026, the Ministry of Food Processing Industries has approved 165 applications covering 274 project locations, with reported investments exceeding Rs. 920 crore (US$ 0.10 billion) and incentives worth around Rs. 2,000 crore (US$ 0.21 billion) already disbursed. The scheme has also surpassed its employment target, generating approximately 3.39 lakh direct and indirect jobs, reflecting strong industry participation and implementation progress.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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