India, July 8 -- The Government of India has issued a release:
The Ministry of Food Processing Industries (MoFPI ) held a high-level consultation with stakeholders today at Vigyan Bhawan, New Delhi. The objective was to discuss the future roadmap for financial support to the food processing sector and to outline the next phase of incentive/subsidy schemes.
The consultation meeting was attended by senior officials of the Ministry , representatives from IFCI Limited and Invest India, industry representatives, various sectoral industry associations, and beneficiaries of the Production Linked Incentive Scheme (PLISFPI). The objective of the meeting was to obtain systematic suggestions from industry regarding the proposed expansion of the scheme, its scope, implementation framework, and incentive structure.
The meeting began with a presentation on the key achievements of the current PLISFPI scheme. Against the original investment target of Rs.7,722 crore, beneficiary companies have invested over Rs.9,207 crore in 212 manufacturing units located in 22 states, representing approximately 20 percent more than the initial commitment. Sales of products supported under the PLI scheme increased from Rs.58,758 crore in FY 2019-20 to Rs.1,08,854 crore in FY 2025-26, registering a compound annual growth rate (CAGR) of 10.82 percent. Exports also grew at a CAGR of 11.05 percent during the same period, reaching Rs.20,840 crore. The scheme has generated approximately 3.35 lakh direct and indirect employment opportunities, and has also encouraged investments worth over Rs.3,265 crore in notified tribal areas. A notable achievement of the scheme was in the area of processed food products based on coarse grains. Sales of products in this category grew at a CAGR of 104 percent, while procurement of coarse grains increased at a significant CAGR of 97 percent.
Delivering the keynote address, Shri Avinash Joshi, Secretary, Ministry of Food Processing Industries, stated that the government is committed to developing an evidence-based and industry-driven policy framework for next-generation incentive schemes for the food processing sector. He stated that the key objectives of the future policy framework will be to strengthen domestic manufacturing , enhance India's global competitiveness, encourage innovation and technology adoption, promote value addition, and ensure maximum benefits to farmers, micro, small, and medium enterprises (MSMEs), and agricultural value chains.
During the meeting, detailed discussions were held on key sub-sectors of the food processing sector, including ready-to-cook/ready-to-eat food products , bakery and confectionery, processed fruits and vegetables, beverages and spices, marine products, dairy, nutraceuticals, functional foods, plant-based proteins, animal feed, and food processing machinery.
Industry representatives widely recommended that the next phase of the scheme adopt a more flexible and outcome-oriented incentive structure. Suggestions included expanding the scope of the scheme to include new food and beverage categories , developing differentiated incentive structures based on strategic objectives such as exports, import substitution, research and development (R&D), innovation and technology adoption, and linking incentives to job creation and capital investment.
The participants also stressed the need to strengthen support for branding and marketing of Indian food products abroad , improve reimbursement arrangements, facilitate backward integration for critical raw materials, simplify implementation procedures, rationalize eligibility criteria and encourage automation, quality enhancement and product innovation.
The meeting emphasized on giving special importance to nutraceuticals, functional foods, plant-based proteins, dairy ingredients, value-added marine products, animal feed, pet food and advanced food processing technologies as emerging sectors having immense potential both at domestic and export levels.
The consultation meeting also emphasized the need to create a globally competitive innovation ecosystem through dedicated research infrastructure, clinical validation facilities, centers of excellence, export promotion initiatives, and regulatory support. Industry representatives also advocated for more effective policy support to promote import substitution, develop indigenous ingredients, strengthen supply chains, and foster globally competitive Indian food brands.
The meeting concluded with a summary of Invest India's key recommendations , followed by a concluding address by the Secretary of the Ministry of Food Processing Industries (MoFPI). He emphasized that the government aims to adopt a focused, collaborative, and action-oriented approach with clear objectives. As part of this, it has proposed the formation of two working groups. The first working group will address the prevailing misconceptions and negative perceptions regarding processed food products and the broader food processing sector. The second working group will adopt a focused, collaborative, and results-oriented approach to strengthen and promote India's food processing sector. He stated that the responsibility of these working groups will not only be limited to promoting processed food products, but will also include developing a scientifically based, positive, and development-oriented approach for the sector, in accordance with their assigned mandate. The Secretary assured all stakeholders that the Ministry will carefully examine all recommendations received and, working in close collaboration with industry, will continue to develop a transparent, progressive, and future-oriented policy framework. He reiterated that the Government is fully committed to establishing India as a global food processing hub by promoting innovation, enhancing competitiveness, strengthening value chains and creating sustainable employment opportunities across the sector.
Disclaimer: The original story of this translated version is available on Press Information Bureau.
Disclaimer: Curated by HT Syndication.
