New Delhi: The Centre on Wednesday held consultations with industry stakeholders to chart out the design, scope, implementation framework and incentive structure for an expanded Production-Linked Incentive Scheme for the Food Processing Industry (PLISFPI), as it looks to shape the next phase of fiscal support for the sector.
Food Processing Industries Secretary Avinash Joshi, in his keynote address, said the government wants to build an evidence-based, industry-led framework for the next generation of incentives in the sector.
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He added that the upcoming policy will focus on boosting domestic manufacturing, sharpening India's global competitiveness, pushing innovation and technology adoption, encouraging value addition, and ensuring farmers, MSMEs and agri value chains see greater benefits, an official statement said.
At the end of the meeting, the secretary said the ministry would set up two working groups - one to counter negative and misleading perceptions around processed foods, and another to drive a coordinated push to strengthen and promote India's food processing sector, including building a science-based, growth-oriented narrative for the industry.
He assured stakeholders that all recommendations would be examined closely and reaffirmed the government's commitment to positioning India as a global hub for food processing through innovation, stronger value chains and sustainable job creation.
The consultation was attended by senior ministry officials, along with representatives from IFCI Ltd, Invest India, industry leaders, sectoral associations and existing PLISFPI beneficiaries.
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A presentation at the start of the meeting laid out the scheme's track record so far. Against a committed investment of Rs 7,722 crore, companies backed by the scheme have actually invested over Rs 9,207 crore across 212 manufacturing units in 22 states - nearly 20 per cent above target.
Sales of PLI-linked products rose at a compound annual growth rate of 10.82 per cent, climbing from Rs 58,758 crore in FY20 to Rs 1,08,854 crore in FY26, while exports grew at a CAGR of 11.05 per cent to touch Rs 20,840 crore in the same period.
The scheme has also created roughly 3.35 lakh direct and indirect jobs and drawn over Rs 3,265 crore in investment into notified tribal areas. Millet-based processed foods emerged as a standout category, with sales expanding at a CAGR of 104 per cent and millet procurement rising 97 per cent annually.
In the meeting, industry participants pushed for the next phase to be more flexible and outcome-driven, suggesting the scheme's ambit be widened to cover emerging food categories and that incentives be differentiated based on goals such as exports, import substitution, R&D, innovation, employment generation and capital investment.
Stakeholders also called for stronger backing for overseas branding and marketing, smoother reimbursement processes, better backward integration for critical raw materials, simplified compliance, rationalised eligibility norms, and a greater push for automation and quality upgrades.
Nutraceuticals, functional foods, plant-based proteins, dairy ingredients, marine value-added products, animal feed and pet food were flagged as high-potential "sunrise" categories for both domestic and export growth.
Participants additionally sought a stronger innovation ecosystem - including dedicated research infrastructure, clinical validation facilities, Centres of Excellence and export-promotion support - along with a policy push for import substitution, indigenous ingredient development and stronger, globally competitive Indian food brands.
