MoFPI PLI Scheme India me Food processing is no longer merely a sector focused on the transformation of farm produce into packaged food. The sector is now developing into a large-scale, export-oriented manufacturing ecosystem and has become one of the most promising food processing business opportunities in India.
Supported by government initiatives and a growing domestic market, food processing is today one of the most important contributors to the Indian economy. As per the MoFPI Annual Report for the financial year 2024-25, food processing is responsible for about 7.93% of GVA in the manufacturing sector and 8.45% in the agriculture sector, besides allowing food exports of USD 46.43 billion in 2023-24.
MoFPI, meanwhile, has been rolling out impressive plans like the Production Linked Incentive Scheme for Food Processing Industries (PLISFPI) and the Meaga Food Park & Agro Processing Cluster schemes. These schemes are much more than just a matter of incentives; they are the total backing up of environment establishment leading to low-risk, scalable and globally competitive food production businesses.
Read More: MoFPI Schemes for Food Processing Startups: Guide to Grants, PLI, PMFME
1. The Food Processing Sector: A Snapshot of Opportunity
The food processing sector in India is one of the fastest-growing industries. It has witnessed a significant increase with a CAGR of 6.55% from 2014 to 2023. The sector’s exports reached USD 46.34 billion in FY 2023-24, which was nearly 11.7% of India’s total exports.
Besides these, the food processing industry is one of the largest sectors in terms of employment generation, with more than 22.96 lakh registered units and also has more than 46 lakh FDI in the unorganised sector. It has drawn USD 7.22 billion in FDI from 2014 to 2024.
2. MoFPI PLI Scheme for Food Processing Industries (PLISFPI Explained)
2.1 What is MoFPI PLI Scheme?
The Production-Linked Incentive Scheme for Food Processing Industries (PLISFPI) is one of the government initiatives that is aimed at making India a major player in the world food markets by giving financial support in the form of bonuses related to sales and export.
India is going to turn out global foods along with its strong brands and manufacturing houses in different kinds of categories where the country has already planned to create a stronghold.
2.2 Focus Areas Under the Scheme
PLISFPI nurtures and supports high-growth areas such as:
- Ready-to-eat and ready-to-cook foods
- Processed fruits and vegetables
- Dairy products
- Marine and seafood products
- Millet-based and health foods
- Nutraceuticals and functional foods
The mentioned categories have both strong domestic and export demand.
2.3 Impact on Startups
The PLI scheme makes financial risk less, pushes technology investments, and gives a help of quicker scaling to startups. For instance, a startup that is into making snacks or beverages from millet can use the scheme to increase production and aim at the European, Middle, and American markets.
3. MoFPI PLI Scheme & Mega Food Parks: Infrastructure for Scale
3.1 What are Mega Food Parks?
Mega Food Parks refer to big industrial zones that come with world-class facilities like:
- Cooling and storage facilities
- Testing and quality checking laboratories
- Food processing and packaging units
- Transportation and supply chain facilities
The use of a common set of infrastructure has a huge impact on the cost of the project as it gets reduced and at the same time, productivity gets enhanced.
3.2 Advantages for Startups
Startups would not be required to make huge investments in infrastructure at the beginning. Moreover, these parks are going to be waste-free and, at the same time, productivity and speed of access to the market are going to be improved. They are going to join the farmers, processors, and buyers in a single network of interdependence.
Read More: How to Get MoFPI Grants and Capital Subsidies for Your Food Processing Project
3.3 Existing Network of Food Parks
Presently, the government has given the green light to more than 22 Mega Food Parks in the different states of Punjab, Gujarat, Maharashtra, Assam, and Tamil Nadu among others. Moreover, there are different Agro-Processing Clusters that are being set up to cater to the region-specific products.
4. Regional Specialization Through Agro-Processing Clusters (ODOP)
The “One District One Product” (ODOP) policy is giving district-level specialization a push. A few of the districts are:
- Nagpur – Orange processing
- Varanasi – Mango pulp and puree
- Kerala – Spices, oleoresins, essential oils
The above-mentioned regions are the ones that help startups use local raw materials at lower cost and strengthen the regional brands.
5. High-Profit Food Processing Business Opportunities Under MoFPI PLI
PLI incentives combined with park-infrastructure are producing several opportunities in:
- Cereals & Millets: Millet snacks, fortified rice, gluten-free flour
- Fruits & Vegetables: Dehydrated powders, juice concentrates, frozen and freeze-dried fruits
- Spices: Organic spices, essential oils, extracts
- Dairy & Seafood: Lactose-free dairy, frozen seafood, processed meat
Sugar & Confectionery: Jaggery, specialty sugars, sugar-free products.
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6. Import Substitution: A Major Opportunity
India is using its foreign exchange reserve to pay for importing:
- Edible oils worth over USD 15 billion
- Cocoa and chocolate products
- Beverages and food ingredients
The opening of food parks and generous PLI incentives will ensure that entrepreneurs in the country will be able to supply these products at competitive prices thus creating opportunities for Indian entrepreneurs.
7. MSME Success Stories
The likes of LT Foods (Daawat), MDH, Everest, and Paper Boat are the brands that tell us how success is achieved by:
- Value addition
- Strong branding
- Quality manufacturing
- Scalable infrastructure
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8. How NPCS Supports Entrepreneurs
NPCS offers:
- Techno-economic feasibility reports (DPR/EMR)
- Preparation of manufacturing process and plant installation advice
- Market research and project costing
- Assistance in the establishment and growth of food processing industries
9. Starting A Food Processing Unit In India (Basic Steps)
Find the Best Idea for Yourself With our Startup Selector Tool
10.Investment and Profit Potential
- The lowest price for small units is between ₹50 lakhs to ₹2 crores
- Medium risk may involve ₹5 – ₹20 million
- Profit margins of 10% to 25% are usually expected depending on the product category, branding, and scale
Conclusion:
Food processing in India is now becoming a high-growth market. Thanks to the government’s support through the MoFPI PLI Scheme and Mega Food Parks, the path for start-ups and MSMEs to make scalable and globally competitive food manufacturing businesses is now clear and low-risk.
FAQs
1. What is PLISFPI?
It’s a government incentive scheme that gives rewards to the food processing companies which are successful in increasing their production and exports.
2. What is the benefit for the startups from Mega Food Parks?
They can access the shared infrastructure which consists of cold storage, labs, and processing facilities at a much lower cost.
3. Who can apply for the schemes of MoFPI?
Any company or MSME that carries out food processing activities can apply.
4. What is the minimum amount required to invest to set up a food processing unit?
Starting from about ₹50 lakhs and depending upon scale and product, it can go up.
5. Is it a profitable business to process food in India?
Definitely, if one can choose the right product and brand it well, he can have a profit margin of 10–25% which is quite good.
