To what extent has the Production Linked Incentive Scheme for the food processing industry facilitated value addition, employment generation, and global competitiveness in India's food processing industry? (Answer in 250 words)

India is the 2nd largest agricultural producer in world. Yet it exports only 2.41% of agricultural produce (ranking 8th). A main reason for this has been the lack of Adequate Food Processing Capabilities. → In this light, GoI launched PLI scheme for food processing sector. ROLE PLAYED BY PLI SCHEME: Value Addition: i) Improved Value addition in dairy sector eg packaged milk, dahi fisheries eg shrimp exports to U.K. ii) Increased shelf life Employment and livelihood:

iii) Alternative Income → Food processing industry provides supplementary income to farmers. iii) Utilizes the rich demographic dividend especially in rural areas. (Certain Shortcomings: a) Not a labour intensive industry. b) Limited employment generation potential eg unemployment rate @ 6%. ii) Enhanced export potential: eg Desi Cow A2 milk high in demand in Europe. ii) Promotes indigenous products eg Ragi millet Pudding

Certain Shortcomings: a) Global standards unmet — eg 'Sanitary and Phytosanitary measures' pose a challenge. b) Intense competition from China, Thailand, ASEAN etc. # Therefore PLI Scheme through overall effective had some challenges: 1) For employment generation eg Union Cabinet recently launched 'Employment linked Incentive' ELI scheme. 2) Maintain Global Standards → Regular, Quality Inspections, checks, Research and Innovation. → Food Processing Industry can provide the handhold support for India's Agriculture.

— Rasneet Kaur · AIR 51