Production-Linked-Incentive Scheme for Food Processing Industries

Recently, Union Cabinet has approved “Production Linked Incentive Scheme for Food Processing Industry” entailing an outlay of Rs.10,900 crore.

The PLI Scheme was introduced to boost domestic manufacturing and cut down on import bills by giving companies incentives on incremental sales from products manufactured in domestic units. The scheme will support food manufacturing entities with stipulated minimum sales and willing to make stipulated investment for expansion of processing capacity and Branding abroad.


The scheme has two components:

  • The first component relates to incentivizing manufacturing of 4 major food product segments viz. Ready to Cook/Ready to Eat foods, Processed Fruits & Vegetables, Marine products, and Mozzarella cheese

  • The second component relates to support for branding and marketing abroad

The scheme will be implemented over a six year period from 2021-22 to 2026-27, and is likely to generate employment for nearly 2.5 lakh persons.


With the announcement of this scheme, it is sure that the Government is on the path to improve the conditions of the domestic units, thereby ensuring survival of domestic market.

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