The Production Linked Incentive (PLI) scheme for the food processing industry has been a significant driver of employment in India.
According to the Ministry of Food Processing Industries, the scheme has generated employment for over 2.89 lakh people as of October 31, 2024.
This initiative, approved by the Union Cabinet on March 31, 2021, aims to boost domestic manufacturing, enhance value addition, and create job opportunities.
PLI Scheme: Investment and Job Creation
The PLI scheme has attracted an investment of Rs 8,910 crore across 213 locations in the country.
This substantial investment has led to the creation of numerous job opportunities, particularly in rural and underdeveloped areas.
By mandating the use of domestically-grown agricultural products in the manufacturing process, the scheme has significantly increased local raw material procurement, benefiting farmers and supporting their incomes.
The emphasis on local production of raw materials for processed food has generated additional off-farm employment opportunities, significantly contributing to the economic development of rural regions.
The scheme has played a crucial role in scaling up domestic manufacturing and boosting the domestic production of raw materials.
This has not only created jobs but also supported the overall growth and development of the country.
Support for SMEs and Global Brand Promotion
The Centre actively supports small and medium enterprises (SMEs) in the food processing sector through various schemes, including the PLI scheme, Pradhan Mantri Kisan Sampada Yojana (PMKSY), and the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme.
These initiatives provide financial, technical, and marketing support to SMEs, facilitating capacity expansion, innovation, and formalisation.
Under the PLI scheme, a significant proportion of beneficiaries are MSMEs, with 70 MSMEs directly enrolled and 40 others contributing as contract manufacturers for larger companies.
The PLI scheme also promotes Indian brands globally by reimbursing beneficiaries for 50% of their expenditure on branding and marketing abroad, capped at 3% of their annual food product sales or Rs 50 crore per year, whichever is lower.
This support helps Indian companies expand their reach and compete in the global market.
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