SF Prep Notes

Backgrounder: PLI Scheme for Food Processing Industry — ₹10,900 crore outlay, 3.39 lakh jobs

A PIB backgrounder of 21 April 2026 said the Production-Linked Incentive Scheme for the Food Processing Industry, with an outlay of ₹10,900 crore for 2021-22 to 2026-27, had created about 3.39 lakh jobs by February 2026.

Summary

The Production-Linked Incentive Scheme for the Food Processing Industry (PLISFPI), approved by the Union Cabinet on 31 March 2021, has an outlay of ₹10,900 crore for 2021-22 to 2026-27, according to a PIB backgrounder published on 21 April 2026. As of February 2026, 165 applications covering 274 project locations had been approved, beneficiaries had received ₹2,162.55 crore in incentives, and about 3.39 lakh jobs had been created against a target of 2.5 lakh. Food processing GVA rose from ₹1.34 lakh crore in 2014-15 to ₹2.24 lakh crore in 2023-24. The broader PLI Scheme, launched in April 2020, now covers 14 sectors with an incentive outlay of ₹1.97 lakh crore.

Key facts

Scheme
PLISFPI; Cabinet approval 31 March 2021
Outlay / period
₹10,900 crore; 2021-22 to 2026-27
Approved (Feb 2026)
165 applications, 274 project locations
Incentive paid
₹2,162.55 crore
Jobs
~3.39 lakh (target 2.5 lakh)
Umbrella PLI
Launched April 2020; 14 sectors; ₹1.97 lakh crore

Practice MCQs 3 questions

Q1

What is the outlay of the Production-Linked Incentive Scheme for the Food Processing Industry (2021-22 to 2026-27)?

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Correct answer: B — ₹10,900 crore

PLISFPI has an outlay of ₹10,900 crore; ₹1.97 lakh crore is the outlay of the overall PLI framework across 14 sectors.

Q2 Advanced

As of February 2026, how many jobs had the PLI Scheme for the Food Processing Industry created, against a target of 2.5 lakh?

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Correct answer: D — About 3.39 lakh

About 3.39 lakh jobs had been created, exceeding the employment target of 2.5 lakh.

Q3 Advanced

Consider the following statements about Production-Linked Incentive (PLI) schemes: 1. The umbrella PLI Scheme was launched in April 2020 and now covers 14 strategic sectors. 2. The PLI Scheme for the Food Processing Industry was approved by the Union Cabinet on 31 March 2021. Which of the statements given above is/are correct?

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Correct answer: C — Both 1 and 2

Both are correct, per the PIB backgrounder: the PLI Scheme was launched in April 2020 and covers 14 sectors, and PLISFPI was approved by the Cabinet on 31 March 2021.

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