PLI Scheme for Food Processing and Products Industry
4.9
PLI Scheme for Food Processing & Products Industry in India
The Production Linked Incentive (PLI) Scheme for the Food Processing and Products Industry will turn the country into a production powerhouse for world-class processed food products. The PLI Scheme for Food Processing and Products Industry focuses on economies of scale as it seeks to raise output of a range of foods whilst at the same time enhancing local technological capacities in food manufacturing. The PLI Scheme for Food Processing and Products Industry reduces import reliance as well as promotes value-addition within India, thereby attracting domestic and foreign investment, including human talent. The PLI Scheme for Food Processing and Products Industry initiative will not only help in developing the status of India in the food markets around the globe but also in boosting the technological efficiency of the food processing sector of the country and thus will help in increasing the status of India in the food supply chain of the world in premium products.
Table of Content
- What is the PLI Scheme for Food Processing and Products Industry?
- Benefits of PLI Scheme for Food Processing and Products Industry
- Eligibility for PLI Scheme for Food Processing and Products Industry
- Scheme Details of PLI Scheme for Food Processing and Products Industry
- Tenure of PLI Scheme for Food Processing and Products Industry
- Conclusion
- Frequently Asked Questions
What is the PLI Scheme for Food Processing and Products Industry?
The Production Linked Incentive (PLI) Scheme for Food Processing and Products Industry is designed to increase production capacity of several high-value industries, value-added, or industries considered critical to food processing. The PLI Scheme for Food Processing and Products Industry was planned and designed as a rigorous structural plan to unbundle the nation’s supply vulnerability and bolt India into the international manufacturing and export map for food items. Rewarding performance through incentives, the PLI Scheme for Food Processing and Products Industry fosters increased manufacture and application of new technologies as well as the integration of best practices from around the world. As a result of the PLI Scheme for Food Processing and Products Industry, the opportunities for competition in the international market within this sector are enhanced in India. Furthermore, the PLI Scheme for Food Processing and Products Industry helps in promoting complex food processing technologies, uplifts India’s position in the value chain, creates employment opportunism and empowers India as a leading exporter in the food processing sector.
Benefits of PLI Scheme for Food Processing and Products Industry
The Production Linked Incentive (PLI) Scheme for Food Processing and Products Industry offers several benefits to India’s manufacturing sector:
- Strengthen Infrastructure: The PLI Scheme for Food Processing and Products Industry strengthens capacity to manufacture and other support infrastructure such as Manufacturing facilities, Logistic Infrastructure and distribution networks for food products.
- Enhance Export Competitiveness: The PLI Scheme for Food Processing and Products Industry strengthens India’s position globally through enhancement of the production capacity and development of technology for processed foods and agricultural products export.
- Promote Domestic Manufacturing: The PLI Scheme for Food Processing and Products Industry intends to increase the domestic production capacity to avert dependence on imports and enhance the local value chain to support the industrial development.
- Attract Investments: Under the PLI Scheme for Food Processing and Products Industry, foreign and domestic investments in India’s food processing industry are being promoted.
- Employment Generation: Through the PLI Scheme for Food Processing and Products Industry, job creation is encouraged throughout the value chain in manufacturing, supply chain, and R&D.
Eligibility for PLI Scheme for Food Processing and Products Industry
The eligibility for PLI Scheme for Food Processing and Products Industry includes a range of applicants to ensure broad participation across the sector and the required eligibility criteria that entities must meet is:
- Proprietary Firms, Partnership Firms, and Limited Liability Partnerships (LLPs): must be registered and operating within India.
- Companies Registered in India: any company formally registered under the Indian Companies Act.
- Cooperatives: Registered cooperatives are eligible, allowing for collective participation from agricultural producers and other stakeholders.
- Small & Medium Enterprises (SMEs): SMEs actively engaged in food processing or related sectors, facilitating the growth of innovative and niche products.
Scheme Details of PLI Scheme for Food Processing and Products Industry
The Production Linked Incentive (PLI) Scheme for Food Processing and Products Industry offers structured incentives based on category, manufacturing, innovation and marketing of the food products:
| Product Segment | Description | Incentive Purpose |
|---|---|---|
| Ready to Cook / Ready to Eat (RTC / RTE) | Includes millet-based foods and other ready-to-eat or cook products | To scale up production to meet increasing domestic and global demand |
| Processed Fruits & Vegetables | Covers processed fruits, vegetables, and value-added food products | To support production, enhance value addition, and improve quality |
| Marine Products | Focuses on processed marine foods | To boost production and enhance export quality |
| Mozzarella Cheese | Cheese production with emphasis on mozzarella | To scale up local manufacturing and meet quality standards |
Incentivizing Innovative / Organic Products of SMEs
| Product Segment | Description | Incentive Purpose |
|---|---|---|
| All major food product segments (RTC/RTE, etc.) | Includes RTC/RTE, Processed Fruits & Vegetables, Marine Products, and Mozzarella Cheese for SMEs | To encourage SME production of innovative and organic products |
| Free Range - Eggs, Poultry Meat & Egg Products | Organic and free-range poultry products, eggs, and egg-based products |
Branding and Marketing Support Abroad
| Support Type | Description | Incentive Purpose |
|---|---|---|
| Export Marketing and Brand Promotion | Assistance for Indian food brands to establish and promote themselves in international markets | To strengthen Indian food brands abroad and improve export competitiveness |
Tenure of PLI Scheme for Food Processing and Products Industry
The duration of the Production Linked Incentive (PLI) Scheme for Food Processing and Products Industry is proposed for INC-6 of six years’ duration from FY 2021-22 to FY 2026-27. Under the PLI Scheme for Food Processing and Products Industry, the incentive will be earned in the subsequent year for the amount earned for any given year. Therefore, the incentive of PLI Scheme for Food Processing and Products Industry accruing for activities in the terminal scheme year of FY 2026-27, shall be paid in FY 2027-28. This timeline is designed to provide a constant flow of support through PLI Scheme for Food Processing and Products Industry for the food processing Industry in India so the growth is not timely and can sustain investment inflow and competition to other countries for Indian food products for a long duration.
Conclusion
The Production Linked Incentive (PLI) Scheme for Food Processing and Products Industry is a revolutionary policy to bring India at the forefront of the food processing business. Through boosting production volumes, technology adoption and investment, domestic and foreign; the PLI Scheme for Food Processing and Products Industry helps to cut on the import dependence while promoting value addition within India. Focusing on manufacturing, innovation and branding, PLI Scheme for Food Processing and Products Industry assists in promotion of Indian exports and raises the standards of Indian food brands. Also, the PLI Scheme for Food Processing and Products Industry focuses on infrastructures; this has a positive impact on job creation and increases the development of farm income in rural areas. On balance, the PLI Scheme for Food Processing and Products Industry strategic program enhances the competitiveness of the Indian food sector in the global value chain helping the sector to attain competitiveness at the international level.
Frequently Asked Questions
What are the benefits of the PLI Scheme for Food Processing and Products Industry?
The benefits of the PLI Scheme for Food Processing and Products Industry include strengthening infrastructure, enhancing export, promoting domestic manufacturing, attracting investments, and generating employment opportunities.
What is the PLI Scheme for Food Processing and Products Industry?
The PLI Scheme for Food Processing and Products Industry is a scheme to boost the capacity of food industries in India by increasing cost-efficiency, use of technology, diversifying imports and enhancing India’s market position in the global food market.
What is ITEHS registration and how to obtain it in India?
ITEHS Registration explains the meaning, eligibility, and complete procedure to obtain ITEHS registration in India. It helps manufacturers and exporters understand documentation requirements, application steps, approval process, and compliance obligations related to ITEHS certification for lawful business operations.
.svg)
