13 March 2026·PIB

Performance And Impact of the PLI Scheme for Food Processing Industries

In this note

1. At a Glance

PLISFPI is a central sector scheme of the Ministry of Food Processing Industries (MoFPI) to incentivise creation of global food manufacturing champions and Indian brands abroad, with an outlay of ₹10,900 crore for FY 2021-22 to FY 2026-27 [1][2].
Examinable for Prelims (scheme architecture, numbers) and Mains GS-III (food processing, value chain, employment).

13 March 2026 PIB release by MoFPI quantified year-wise budget, releases and disbursements under PLISFPI, including ₹1,109.69 crore disbursed in FY 2025-26 [1].
Parliament replies in December 2025 highlighted 3.39 lakh direct + indirect jobs generated and ₹9,207 crore cumulative investment under the scheme [2][3].

Cabinet approval: 31 March 2021; one of 14 PLI schemes announced under Atmanirbhar Bharat [2].
Scheme period: FY 2021-22 – FY 2026-27 (6 years) [1].
PLI for Millet-Based Products (PLISMBP) launched in FY 2022-23 with ₹800 crore outlay, funded from savings under PLISFPI [2].

Implementing Ministry: Ministry of Food Processing Industries (MoFPI) [1].
Total outlay: ₹10,900 crore [1].
Three Components: 1. Manufacturing incentives in four segments — Ready-to-Cook/Ready-to-Eat (RTC/RTE), Processed Fruits & Vegetables, Marine Products, Mozzarella Cheese [2]. 2. Innovative/Organic products of SMEs [2]. 3. Support for Branding & Marketing abroad by Indian brands [2].
Three Applicant Categories:
Cat-I: Large entities — incentive on sales and investment criteria.
Cat-II: SMEs in innovative/organic — incentive on sales.
Cat-III: Branding & marketing grant only [2].
Funds released year-wise (₹ crore): 2021-22: 9.27; 2022-23: 489.83; 2023-24: 590.50; 2024-25: 448.36; 2025-26: 1,109.69 [1].

Economic

Cumulative investment of ₹9,207 crore mobilised by approved applicants [3].
Processing capacity addition of 35 lakh MT/annum — strengthens forward linkages to agriculture [3].
CAGR of 13.23% in exports of approved agricultural processed food products (2024-25 over 2019-20 base) [3].

Social / Employment

3.39 lakh direct + indirect jobs generated to date — important for non-farm rural employment [3].
SME component (Cat-II) seeds innovative/organic enterprises [2].

Administrative

170 applications approved across categories till September 2025 [3].
Revised Estimates consistently below Budget Estimates (e.g., 2023-24 BE ₹1,530 cr → RE ₹1,150 cr) — signals slower-than-projected disbursement absorption [1].

Strategic / Atmanirbhar

Builds Indian "champion brands" globally; reduces dependence on imported processed foods (e.g., Mozzarella) [2].

March 2026 (PIB): Year-wise BE/RE/disbursement table released; FY 2025-26 disbursement ₹1,109.69 cr — sharpest jump yet [1].
December 2025 (Parliament): MoS confirmed 3.39 lakh jobs and ₹1,726.60 cr cumulative incentive disbursement till June 2025 [3].
September 2025: 170 applicants approved; 35 lakh MT capacity created [3].
Continued operation of PLISMBP (millets) alongside parent scheme [2].

Outlay of PLISFPI = ₹10,900 crore [1].
Scheme period: FY 2021-22 to FY 2026-27 [1].
Implementing ministry: MoFPI (not Agriculture / not Commerce) [1].
Four manufacturing segments: RTC/RTE, Processed F&V, Marine, Mozzarella Cheese [2].
Three applicant categories — Cat-I large, Cat-II SME innovative/organic, Cat-III branding [2].
PLISMBP (millets) outlay = ₹800 crore, launched FY 2022-23 [2].
Cabinet approval of PLISFPI: March 2021 [2].
One of 14 PLI schemes under Atmanirbhar Bharat [2].
Cumulative investment under PLISFPI: ₹9,207 crore [3].
Capacity addition: 35 lakh MT per annum [3].
Employment generated: ~3.39 lakh (direct + indirect) [3].
Export CAGR of approved products: 13.23% (2024-25 vs 2019-20) [3].
Approved applications till Sept 2025: 170 [3].
Total incentive disbursed till June 2025: ₹1,726.60 crore [3].

GS-III: "Food processing and related industries in India — scope and significance, location, upstream and downstream requirements, supply chain management."
GS-II: Government schemes — design, implementation, performance.
Probable stems: 1. "Evaluate the performance of the PLI Scheme for Food Processing Industries in achieving the twin objectives of capacity creation and brand promotion." 2. "Production-linked incentives are reshaping India's manufacturing footprint but face absorption challenges. Examine in the context of PLISFPI." 3. "Discuss how PLISFPI complements other interventions like PMKSY in building a globally competitive Indian food processing sector."

PM Kisan Sampada Yojana (PMKSY) — sister scheme on infrastructure for food processing.
Operation Greens (TOP → TOTAL) — perishables value chain.
14 PLI Schemes (especially Pharma, Electronics, Textiles) — comparative design.
Atmanirbhar Bharat Abhiyan — overarching policy umbrella.
APEDA — export promotion of agricultural & processed foods.
National Mission on Edible Oils–Oil Palm — value-chain linkage.
Millet Mission / International Year of Millets 2023 — links to PLISMBP.
FSSAI standards — quality regulation interface.

Wrong ministry: PLISFPI is under MoFPI, not Ministry of Agriculture or DPIIT.
Outlay confusion: PLISFPI = ₹10,900 cr; aggregate of all 14 PLI schemes = ₹1.97 lakh crore — don't conflate.
Segments: Mozzarella Cheese (not all dairy) is the listed segment; marine is included; poultry/meat is NOT a separate segment.
PLISMBP (millets) is a separate sub-scheme with its own ₹800 cr outlay — not part of the ₹10,900 cr.
Scheme covers FY 2021-22 to 2026-27 (6 years) — not 5 years as in some other PLI schemes.