Daily News Analysis

Production Linked Incentive Scheme

4th May, 2021 Economy

GS PAPER III: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment.

Context: Ministry of Food Processing Industries issues guidelines for ‘Production Linked Incentive Scheme for the Food Processing Industry’


  • As a part of of Aatmanirbhar Bharat Abhiyan, Government of India has approved a new Central Sector Scheme namely‘Production Linked Incentive Scheme for Food Processing Industry’for implementation during 2021-22 to 2026-27 with an outlay of Rs. 10,900 crores.
  • Aim: To support creation of global food manufacturing champions commensurate with India's natural resource endowment and support Indian brands of food products in the international markets.


  • Ministry of Food Processing Industries is inviting applications for availing sales based incentives and grants for undertaking Branding & Marketing activities abroad under the scheme from three categories of Applicants:

Category-I: Applicants are large entities who apply for Incentive based on Sales and Investment Criteria. Applicant under this category could undertake Branding & Marketing activities abroad also and apply for grant under the scheme with a common application.

Category-II: SMEs Applicants manufacturing innovative/ organic products who apply for PLI Incentive based on Sales.

Category-III: Applicants applying solely for grant for undertaking Branding & Marketing activities abroad.

Applicant for the Scheme shall be

(i) Proprietary Firm or Partnership Firm or Limited Liability Partnership (LLP) or a Company registered in India

(ii) Co-operatives; and

(iii) SME and making an application for seeking approval for coverage under the Scheme.

About PLI Scheme:

The PLI scheme seeks to make India a significant manufacturing destination and also log into the global supply chain.