PLI scheme for Food Processing Industry generated over 2.89 lakh employment
Dec 06, 2024
New Delhi [India], December 6 : The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) has generated employment of over 2.89 lakh as of October, and an investment of Rs 8,910 crore has been made across 213 locations, according to the Ministry of Food Processing Industries .
In a press release, the Ministry stated that the scheme has significantly contributed to the country's overall growth and development by scaling up domestic manufacturing, enhancing value addition, boosting the domestic production of raw materials, and creating employment opportunities.
Under the PLI scheme, a significant proportion of beneficiaries are MSMEs, with 70 MSMEs directly enrolled and 40 others contributing as contract manufacturers for larger companies. Collectively, these initiatives have strengthened SMEs by fostering innovation, improving competitiveness, expanding market access, generating employment opportunities, and supporting the broader value chain in the food processing industry.
The scheme also supports large companies, millet-based products, innovative and organic products, as well as small and medium enterprises, while also promoting Indian brands globally.
By mandating the use of domestically grown agricultural products (excluding additives, flavours, and edible oils) in the manufacturing process, the scheme has substantially increased local raw material procurement, benefiting underdeveloped and rural areas while supporting farmers' incomes.
Furthermore, the emphasis on local production of raw materials for processed food has generated additional off-farm employment opportunities, significantly contributing to the economic development of rural regions. Under the Production Linked Incentive Scheme for Food Processing Industries (PLISFPI), the Government provides financial incentives to promote Indian food brands abroad, supporting branding and marketing activities for Indian-branded consumer food products in global markets.
Beneficiaries are reimbursed 50 per cent of their expenditure on branding and marketing abroad, capped at three per cent of their annual food product sales or Rs 50 crore per year, whichever is lower.
Applicants are required to spend a minimum of Rs 5 crore over five years to qualify. Currently, there are currently 73 beneficiaries under this component of the PLI scheme, as per the ministry's release.
