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?
Main Body
Production Linked Incentive PLI scheme is an instrument to reward successive sales in manufacturing, food processing industry etc to establish 'Make In India' goal. Easier 14 sectors → PLI → promotion of indigenous manufacturing → rewards for successive sales Progress of PLI for Food Processing Industry: I Facilitating value addition: Achievements: (1a) conversion of various dairy products (1b) AMUL butter in agricultural sector (1c) millets (1d) Mobile phone manufacturing enhanced (1e) setting up of Apple facilities (1f) Electric vehicle manufacturing Challenges: (1) No major value addition (2) Mobile phone assembly is taking precedence over value addition (3) Large foreign components in electric vehicles
II Employment generation: Achievements: (1) Food Processing industry employs about second largest workforce after agriculture (2 to textile sector) (2) loss skilled personnel can be adjusted Challenges: (1) Majority of job creation in informal settings (2) unskilled personnel used become redundant with advent of AT III Global competitiveness: Achievements: (1) Some 'Brand India' products seen exports (2) Contributes to exports (major portion of agricultural exports) (3) Millets Network Initiative to add value to millets - known STHs Challenges: (1) Can't compete with dairy products of nations like Australia & New Zealand (2) Overall visibility is still low Criteria change - Set minimum value addition requirement for rewards Measures required: (1) Criteria change - Set minimum value addition requirement (2) Promote online visibility of value-added products (3) ONDC, e-commerce (4) Provide cold chain storage via PPP
Additional details on achievements and challenges of PLI scheme across sectors
Further analysis of PLI effectiveness across various sectors including employment generation and global competitiveness aspects
Global competitiveness analysis: Achievements include some 'Brand India' products seen exports, contributes to exports as major portion of agricultural exports, and Millets Network Initiative. Challenges include inability to compete with dairy products of nations like Australia and New Zealand, and overall visibility is still low. Measures required include criteria change to set minimum value addition requirement, promote online visibility of value-added products, ONDC and e-commerce platforms, and provide cold chain storage via PPP. Food processing industry is a sunrise sector that can help resolve India's jobless growth paradox.
— ANANYA RANA · AIR 60
Conclusion
15 words
ANANYA RANA
Agriculture and Food Security
Food processing
PLI scheme and value addition
367
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analytical
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