The Ministry of Food Processing Industries (MoFPI) organized a high-level stakeholder consultation at Vigyan Bhawan, New Delhi, to deliberate on the future roadmap for fiscal support to the food processing sector and formulate the next phase of incentive/subsidy schemes. The consultation brought together senior ministry officials, representatives of IFCI Limited and Invest India, industry leaders, sectoral associations, and beneficiaries of the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI).
The meeting highlighted significant achievements of the existing PLISFPI scheme. Against originally committed investment of ₹7,722 crore, beneficiary companies reported investments exceeding ₹9,207 crore across 212 manufacturing locations in 22 States, surpassing initial commitments by nearly 20%. Sales of PLI-supported products grew at a CAGR of 10.82%, increasing from ₹58,758 crore in FY 2019-20 to ₹1,08,854 crore in FY 2025-26. Exports registered a CAGR of 11.05%, reaching ₹20,840 crore during the same period. The scheme generated approximately 3.35 lakh direct and indirect employment opportunities and facilitated investments of over ₹3,265 crore in notified tribal areas. A notable outcome was the remarkable growth in millet-based processed foods, with sales growing at a CAGR of 104% and millet procurement increasing at a CAGR of 97%.
Shri Avinash Joshi, Secretary of MoFPI, emphasized the government's commitment to building an evidence-based, industry-driven framework for the next generation of food processing incentives. The future policy architecture would focus on strengthening domestic manufacturing, enhancing India's global competitiveness, promoting innovation and technology adoption, encouraging value addition, and ensuring greater benefits for farmers, MSMEs, and agri-value chains.
Sector-specific deliberations covered major food processing segments including Ready-to-Cook/Ready-to-Eat Foods, Bakery and Confectionery, Processed Fruits & Vegetables, Beverages and Spices, Marine Products, Dairy, Nutraceuticals, Functional Foods, Plant-Based Proteins, Animal Feed, and Food Processing Machinery. Industry representatives recommended adopting a more flexible and outcome-oriented incentive framework, broadening scheme coverage to encompass emerging food categories, and introducing differentiated incentive structures based on strategic objectives such as exports, import substitution, research and development, innovation, and technology adoption.
Participants highlighted the need to strengthen support for overseas branding and marketing, improve reimbursement mechanisms, facilitate backward integration for critical raw materials, simplify implementation processes, rationalize eligibility criteria, and encourage automation, quality enhancement, and product innovation. Special emphasis was placed on promoting nutraceuticals, functional foods, plant-based proteins, dairy ingredients, marine value-added products, animal feed, pet food, and advanced food processing technologies as sunrise sectors with significant domestic and export potential.
The consultation underscored the importance of creating a globally competitive innovation ecosystem through dedicated research infrastructure, clinical validation facilities, Centres of Excellence, export promotion initiatives, and regulatory support. Industry also advocated greater policy support for import substitution, development of indigenous ingredients, strengthening supply chains, and promoting globally competitive Indian food brands.
The meeting concluded with the formation of two Working Groups: the first to address misleading and negative perceptions about processed food products and the broader food processing sector, and the second to adopt a focused, collaborative approach toward strengthening and promoting India's food processing sector. Secretary Joshi assured stakeholders that the Ministry would carefully examine recommendations and develop a transparent, progressive policy framework to make India a global hub for food processing.