Approval of Production Linked Incentive Scheme for Food Processing Industry (PLI FPI)

Approval of Production Linked Incentive Scheme for Food Processing Industry (PLI FPI)

The Union Cabinet has approved the “Production Linked Incentive Scheme for Food Processing Industries” (PLISFPI) with an outlay of Rs 10,900 crore to strengthen domestic companies.

In order to boost domestic manufacturing and cut import bills, the central government in March 2020 introduced a Production Linked Incentive (PLI) scheme, which aims to give incentives to companies to increase sales of manufactured products in domestic units.

The main objectives of the PLISFPI scheme:

  • The objective of the scheme is to strengthen the Indian brand of food products in global markets, ensure remuneration prices of agricultural produce and increase high income and employment opportunities to farmers.
  • Its duration will be for six years from 2021-22 to 2026-27. This scheme will help in increasing the income of the people in the country.
  • The purpose of this scheme, apart from inviting foreign companies to set up commercial establishments in India, is to encourage local companies to set up or expand manufacturing units.
  • The PLISFPI scheme has also been approved in areas such as automobiles, pharmaceuticals, IT hardware, such as laptops, mobile phones and telecommunications equipment, large household appliances, chemical cells and textiles, etc.


  • Encourage food manufacturing institutions that are willing to invest in expanding processing capacity and branding abroad to encourage strong Indian brands with stipulated minimum sales.
  • The first component is to encourage the manufacturing of four major food product segments – Ready Made Foods, Processed Fruits and Vegetables, Marine Products and Mozzarella Cheese.
  • The second component relates to getting support from overseas for branding and marketing.

Estimated Profit:

With the implementation of this scheme, the expansion of processing capacity will yield processed food production of Rs 33,494 crore, and by 2026-27, employment will also be created for about 2.5 lakh persons.

Key Points:

  • Selected applicants will have to invest in plant and machinery in the first two years of 2021-22 and 2022-23 as per their application.
  • The scheme is intended to promote Indian brands abroad with in-store branding, rental of shelf space and will provide grants to applicant institutions for marketing.
  • A national level portal will be set up to apply for the scheme, while the selection, approval and release of funds for coverage under the scheme will be done by the Ministry of Food Processing Industries.

Source – PIB

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