Ishan BhatnagarAIR 5 · CSE 2025 · 275 wordsTheir whole copy
Opening
The Production Linked Incentive (PLI) scheme focuses on providing incentives, such as tax benefits, GST remissions, and other incentive based on the extent of production. It is an integral component of "make in India" towards making India a manufacturing Hub.
The PLI scheme has had an integral role in the food processing industry, as follows:
Body · points
Role in value addition
1> PLI encourages setting up of food processing plants → value addition and enhanced pricing.
2> Incentives on machinery → mechanized production and economies of scale.
3> Focus on value of output → encourages processes that enhance product value.
Role in employment generation
1> Food processing processes like salting, pickles, dehydration → boosting farmer incomes.
2> PLI to food processing MSMEs : creation of jobs in rural areas, semi-urban areas.
3> Employment to low skilled and semi-skilled workers in papad making, jams, jellies etc.
4> Labour intensive industry → more jobs created.
Role in enhancing global competitiveness
1> Focus on high value processes.
2> Demand-focused scheme stressing production of commodities that are market-oriented.
3> Integration with SAMPADA, focus on export-oriented goods of a high quality standard.
4> Integration with certification and testing to enhance safety standards.
Limitations
1> Insufficient focus on technical upgradation.
2> Dwarfism in food processing industry.
3> Preponderance of MNCs monopolizing the FMCG segment, like Hindustan Unilever etc.
way forward
Close · a way forward
1> Cluster based approach to food processing.
2> Encouraging innovation, new offerings.
3> strong emphasis on quality control.
4> Encouraging production of "health foods" and other varieties based on demand.
Hence, the PLI scheme in the food processing sector has helped generate value, employment and exports. The aforementioned suggestions will boost its efficacy.