Government Reports Strong Progress Under Food Processing Incentive Schemes with ₹9,207 Crore Investment, 3.35 Lakh Jobs and Rising Global Food Brand Presence

India’s food processing sector continues to gain momentum with the Ministry of Food Processing Industries (MoFPI) reporting robust progress under the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) and the Prime Minister Formalisation of Micro Food Processing Enterprises (PMFME) Scheme.

According to information shared by Union Minister for Food Processing Industries Shri Chirag Paswan in the Lok Sabha, the flagship schemes have accelerated investments, expanded food processing capacity, strengthened exports, promoted Indian food brands globally and generated employment across the country.

Key Highlights

• ₹10,900 crore allocated under the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) for FY 2021-22 to FY 2026-27.
• 127 companies (163 approved applications), including 69 MSMEs, participating in the scheme.
• Projects spread across 212 locations in 22 States.
• ₹3,271.44 crore incentives disbursed till June 2026.
• ₹9,207 crore investment achieved against the committed ₹7,722 crore.
• 3.35 lakh direct and indirect jobs created, surpassing the target of 2.5 lakh.
• Food processing capacity expanded by 34 lakh metric tonnes per annum.
• Sales of PLI-supported products increased from ₹58,758 crore (FY20) to ₹1,08,854 crore (FY26).
• PMFME continues supporting micro food enterprises with credit-linked subsidies, branding and technology support.

PLISFPI Surpasses Investment and Employment Targets

The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) has emerged as one of the government’s key initiatives to strengthen domestic food manufacturing while making Indian food brands globally competitive.

Since its launch, the scheme has:

• Attracted investments exceeding commitments.
• Encouraged value addition in food processing.
• Increased exports of processed food products.
• Expanded manufacturing capacity.
• Generated employment beyond initial targets.

The Ministry reported that participating companies have invested ₹9,207 crore, significantly higher than the committed investment of ₹7,722 crore, while creating approximately 3.35 lakh direct and indirect jobs.

Food Processing Capacity and Sales Continue to Rise

Investments under the scheme have resulted in the creation of 34 lakh metric tonnes per annum of additional food processing capacity.

At the same time, the sales performance of PLI-supported food products has nearly doubled:

• FY 2019-20: ₹58,758 crore
• FY 2025-26: ₹1,08,854 crore

The government attributes this growth to increased investments in modern food processing technologies, packaging, manufacturing and value addition.

Boosting Indian Food Brands in Global Markets

A key objective of PLISFPI is promoting Indian food brands internationally.

Under its Branding and Marketing Abroad component, approved companies receive financial assistance covering:

• 50% of eligible branding and marketing expenditure
• Subject to 3% of annual food product sales or ₹50 crore per year, whichever is lower.

The scheme aims to strengthen India’s processed food exports while increasing global visibility of Indian food products.

Special provisions have also been introduced for MSMEs, particularly businesses engaged in:

• Organic food products
• Millet-based products
• Innovative food categories

PMFME Continues to Empower Micro Food Enterprises

Alongside PLISFPI, the Prime Minister Formalisation of Micro Food Processing Enterprises (PMFME) scheme continues to strengthen India’s micro food processing ecosystem.

The scheme offers:

• 35% credit-linked capital subsidy (up to ₹10 lakh per unit)
• Support for setting up new enterprises and upgrading existing units
• Common Infrastructure and Common Incubation Centres
• Branding, packaging and marketing assistance of up to 50% of eligible project cost
• Entrepreneurship Development Programmes (EDPs)
• Technical support through NIFTEM and state-level institutions

The programme is designed to improve technology adoption, product quality and export readiness among small food businesses.

Mega Food Parks Continue to Deliver Impact

Although the Mega Food Park Scheme was discontinued in April 2021, its operational infrastructure continues to contribute significantly to India’s food processing ecosystem.

Key achievements include:

• 41 Mega Food Parks approved across 25 states.
• 25 parks operational.
• 28.57 lakh metric tonnes of preservation capacity.
• 15.41 lakh metric tonnes of processing capacity.
• Benefits extended to approximately 86,881 farmers.
• Employment generation exceeding 1.02 lakh people.

Hospitality, Travel & Tourism Impact

The expansion of food processing infrastructure under PLISFPI and PMFME has significant implications for India’s hospitality and tourism industry.

Stronger HoReCa Supply Chains

Hotels, restaurants, cafés, catering companies and cloud kitchens benefit from increased availability of processed, packaged and value-added food products, ensuring consistent quality and supply.

Boost to Culinary Tourism

The promotion of Indian food brands and regional food products strengthens culinary tourism, allowing destinations to showcase authentic local cuisines with improved packaging, preservation and market reach.

Export Growth Enhances India’s Food Brand

As Indian processed food gains greater international visibility, it also reinforces India’s culinary identity, supporting tourism promotion and destination branding.

Support for Local Food Entrepreneurs

PMFME encourages rural entrepreneurs, homegrown food brands and artisan producers to scale operations, creating opportunities for hotels and tourism businesses to source unique regional products.

Enhanced Food Safety

Investments in modern processing technologies and packaging improve food quality and safety standards, supporting premium hospitality operations and international tourism expectations.

Why It Matters

The combined impact of PLISFPI and PMFME demonstrates India’s growing focus on building a globally competitive food processing industry. By encouraging investment, expanding manufacturing capacity, promoting exports and supporting MSMEs, the schemes are strengthening the country’s agricultural value chain while creating significant opportunities for the hospitality, food service and tourism sectors.

For hotels, restaurants, food retailers and tourism businesses, a stronger domestic food processing ecosystem means better supply chain resilience, greater product innovation and enhanced opportunities to showcase India’s rich culinary diversity to global travellers.