India’s Food Story at a Turning Point
India today stands at an important moment in its economic journey. As the nation moves towards becoming one of the world’s largest economies, growth must increasingly be measured not only by the quantity we produce but by the value we create.
A very few sectors reflect this transformation more clearly than the food processing sector.
India is among the largest producers of food grains, fruits, vegetables, milk and marine products. For decades, our agricultural strength ensured food security for the nation. Yet a large portion of this produce traditionally moved directly from farm to market with limited value addition.
Today, only about 12–13 percent of India’s agricultural produce undergoes processing. This gap between production and processing represents one of the largest opportunities in the Indian economy.
The next phase of India’s food journey is therefore clear: to transform agricultural abundance into high-value, globally competitive food products.
The Vision Behind the PLI Scheme
Recognising this opportunity, the Government of India launched the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) in March 2021 with a financial outlay of ₹10,900 crore.
The scheme is being implemented over a six-year period from 2021–22 to 2026–27 by the Ministry of Food Processing Industries (MoFPI).
The core idea behind the scheme is simple but powerful: reward companies that invest in expanding food processing capacity, innovation and global branding and ultimately the schemes creates multiple global food manufacturing champions from India funding them for investing in In-store branding, Shelf space in international retail chains and Global marketing campaigns
Strategic Design: Building a Modern Food Ecosystem
The PLISFPI scheme has been carefully structured around three key pillars.
- Incentivising High-Potential Food Segments
The first component focuses on scaling production in major food categories such as Ready-to-Cook and Ready-to-Eat foods, Processed fruits and vegetables, Marine products
These categories represent areas where India can rapidly expand both domestic consumption and export potential.
- Encouraging Innovation and MSME Participation
The second component supports innovative and organic food products developed by MSMEs. Small and medium enterprises form the backbone of India’s food sector, and their integration into modern supply chains is essential for inclusive growth.
Millet Innovation: Linking Tradition with Modern Markets
In 2023, the International Year of Millets, the Ministry introduced a special initiative under the PLI scheme to encourage the use of millets in ready-to-cook and ready-to-eat products.
Millets are climate-resilient, highly nutritious and deeply rooted in India’s agricultural traditions.
By integrating millets into modern processed foods, the scheme simultaneously promotes nutrition security and climate-resilient agriculture.
The Numbers Behind the Transformation
The progress achieved under the PLI scheme in a short period reflects its strong industry response and policy effectiveness.
So far:
- 165 companies have been approved under the scheme.
- 68 of these are MSMEs, apart from 40 contract manufacturers of large companies.
- A cumulative investment of ₹9,207 crore has already been made.
- Around 35 lakh metric tonnes per year of new processing and preservation capacity has been created.
- The scheme has generated 3.29 lakh jobs, both direct and indirect.
Notably, the original employment target of the scheme was 2.5 lakh jobs. The sector has already achieved 131 percent of this target.
Sale of processed agricultural products from PLI-supported companies have also recorded a compound annual growth rate of 13.23 percent since 2019–20.
(Export rank growth is 7.41% since 2019-20)
A Shining Star Among PLI Schemes
The Production Linked Incentive framework covers 14 sectors across the Indian economy. Among them, the PLI for food processing has emerged as one of the most impactful.
Despite accounting for only around 8 to 9 percent of total PLI subsidy disbursement, the food processing sector has generated nearly 42 percent of the employment created across PLI schemes.
So far, ₹2715 crore incentives have been released under the scheme, representing around 25 percent of the total outlay.
It proves food processing is one of the most employment-intensive sectors in India’s manufacturing ecosystem.
Responding to Changing Consumer Lifestyles
India’s demographic transformation is also shaping the food industry.
A young, urbanising population increasingly demands:
- convenient food solutions
- hygienic packaging
- safe and nutritious ready-to-eat products
Working professionals in cities such as Bengaluru, Mumbai or Delhi often seek quality ready-to-cook or ready-to-eat meals that align with fast-paced lifestyles.
From Food Security to Food Leadership
India’s agricultural abundance is one of its greatest strengths. The challenge before us is to convert this abundance into sustainable economic value. The Production Linked Incentive Scheme for Food Processing Industry is helping accelerate this transition and the journey from food security to global food leadership is going to be manifested soon.
Courtesy PIB, Srinagar
(The Author is Secretary, Ministry of Food Processing Industries.)
