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PLI Scheme & PMKSY spearheading India’s landscape change
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Wednesday, 04 March, 2026, 08 : 00 AM [IST]
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Ashwani Maindola
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India’s agricultural landscape is undergoing a massive industrial transformation, shifting from a history of post-harvest waste to a high-growth export powerhouse. As per recent data from the Ministry of Food Processing Industries (MoFPI), as of February 2026, the sector has become a primary driver of the national economy. This evolution is spearheaded by two flagship initiatives: the Production Linked Incentive (PLI) Scheme and the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY).
The Production Linked Incentive Scheme for Food Processing Industries (PLISFPI) was designed to create - Global Champions - out of Indian food brands. According to the MoFPI, the impact has been tangible and swift. As of early 2026, 169 applications have been approved under the PLI scheme, drawing in a cumulative investment of Rs 9,207 crore. This capital has manifested as a physical expansion of India's industrial backbone, adding 35 lakh metric tonnes of annual processing and preservation capacity to the national grid.
Perhaps most crucially for a growing nation, the PLI scheme has become a massive engine for livelihoods.
The ministry reports that 3.39 lakh persons have found employment—both directly in high-tech factories and indirectly through complex logistics and supply chains. Taking - Brand India - global is one of the most innovative aspects of the PLI framework and its support for international branding. The government is currently reimbursing 50% of expenditure incurred by companies for branding and marketing activities abroad. This support ensures that Indian firms have the financial muscle to compete with established global giants on the world stage.
The Ministry's data on exports of agricultural processed food products under the PLI scheme showed a Compound Annual Growth Rate (CAGR) of 13.23% between 2019 and 2025.
And the broader economic indicators for the food processing sector are equally impressive. The Gross Value Added (GVA) in the sector has surged from Rs 1.34 lakh crore in 2014-15 to Rs 2.24 lakh crore in 2023-24, according to the latest revised estimates. Over the last decade, the sector has maintained an average annual growth rate of 6.55%, consistently outperforming the overall manufacturing sector’s growth of 6.06%. This has made food processing the largest employer in the registered manufacturing sector, accounting for nearly 12.83% of the total organised workforce in the country.
Further, foreign investors have taken notice of this trajectory. Between 2014 and 2025, the sector attracted US$7.33 billion in Foreign Direct Investment (FDI), signalling global confidence in the stability and potential of India’s -Farm-to-Fork- model.
Meanwhile, to prevent the spoilage of perishable crops and ensure year-round availability, the Ministry has prioritised the creation of specialised hubs. Nationwide progress includes: Mega Food Parks and Agro-Processing Clusters that provide -plug-and-play- facilities for entrepreneurs. Integrated Cold Chains that form a temperature-controlled corridor from rural farms to urban centres along with thousands of standalone - Food Processing Units - and backward/forward linkage projects have transformed diverse regions from mere raw material producers into refined processing hubs, directly connecting local farmers to modern industrial value chains and reducing post-harvest losses significantly.
The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) is another scheme for bringing rural units into the formal economy. Nationally, over 1.72 lakh micro-food enterprises have been approved for subsidies. More importantly, the scheme has empowered the grassroots through Self-Help Groups (SHGs), with approximately 3.76 lakh members receiving seed capital totalling Rs 1,282.99 crore.
And with -One District One Product (ODOP), the government has identified 137 unique products under the ODOP initiative across 726 districts. Whether it is specialised fruits from the Northeast, spices from the South, or grains from Central India, this approach ensures that each district focuses on its natural competitive advantage. To nurture these entrepreneurs, 76 incubation centres have been established with an outlay of over Rs 200 crore, providing the technology and training needed to turn a small-scale business into a market-ready brand.
MoFPI is also working on a comprehensive strategy to revolutionise India’s agricultural value chain by integrating cutting-edge technologies and streamlining foreign investment.
The Ministry is currently driving a technological overhaul using Artificial Intelligence (AI), Blockchain, and the Internet of Things (IoT) to enhance industrial infrastructure. This digital shift is powered by three primary initiatives:
PMKSY: Focused on modernising supply chain management from farm gates to retail outlets.
PLISFPI: Targeted at achieving large-scale manufacturing and global branding.
PMFME: Designed to provide specialised technical and financial support for MSMEs and startups.
As per MoFPI, several high-tech projects that demonstrate practical innovation have been completed. Notably, NIFTEM-Thanjavur has developed an active intelligent packaging system featuring antimicrobial agents to extend the shelf life of fruits and vegetables. Similarly, NIFTEM-Kundli has implemented a Blockchain-based traceability solution to ensure transparency in agri-food supply chains. Additionally, the ICAR-Central Institute of Fisheries Technology in Kerala has successfully introduced infrared drying systems for the fisheries sector, amongst others.
Additionally, in a formal response to the 2025 recommendations of the Parliamentary Standing Committee on Agriculture, Animal Husbandry, and Food Processing, the MoFPI outlined its focus on addressing the investment bottlenecks.
To address the bottlenecks, the Ministry has adopted a strict Standard Operating Procedure (SOP)for Foreign Direct Investment (FDI) proposals. Issued by the Department for Promotion of Industry and Internal Trade (DPIIT), this SOP mandates fixed timelines for examination and inter-ministerial consultations. The Ministry emphasised that these measures ensure predictability for global investors, overcoming Administrative Hurdles.
In spite of these advancements, the Ministry acknowledged that projects often face delays due to land acquisition, electricity connections, and statutory -Consent to Establish- clearances from state governments.
To counter these obstacles, the MoFPI has launched a real-time monitoring dashboard and instituted regular site visits and promoter reviews. The Ministry is also coordinating with financial institutions to expedite loan disbursements, ensuring that the shift toward a high-tech food ecosystem remains on track.
Despite this impressive growth, India’s - Farm-to-Fork - journey faces significant hurdles. High logistics costs and a fragmented cold chain—where nearly 30% of fresh produce still decays post-harvest—remain critical bottlenecks. Future progress depends on bridging the -digital divide- among the 86% of farmers who are smallholders and lack access to AI-driven precision tools. Furthermore, escalating climate risks, such as erratic monsoons and heat stress, threaten raw material stability. Experts feel that navigating these challenges will require sustained investment in climate-resilient infrastructure, standardised global quality compliance, and a skilled workforce to manage the high-tech transition.
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