Food processing schemes unlock opportunities for MSMES across India

Ministry of Food Processing Industries (MoFPI) is fostering the growth of India’s food processing sector through schemes like PMKSY, PLISFPI, and PMFME, with a strong focus on MSMEs. PMFME offers 35% capital subsidy and capacity-building support. By June 2025, support had been extended to 1.44 lakh enterprises and 1.16 lakh individuals.

In a written reply to the Lok Sabha, Minister of State for Food Processing Industries Ravneet Singh stated that the Ministry has been actively promoting the growth and development of the food processing sector through targeted schemes aimed at strengthening infrastructure, technology, and entrepreneurship. 

The Ministry is implementing two Central Sector Schemes—Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) and the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)—along with the Centrally Sponsored PM Formalisation of Micro Food Processing Enterprises (PMFME) scheme. These are demand-driven and pan-India in scope, ensuring benefits reach entrepreneurs across all regions, including Bihar. In Bihar, MoFPI has approved 13 projects under PMKSY, 7 under PLISFPI, and 25,349 under PMFME up to June 2025.

MSMEs form a key focus under these schemes. The PMFME scheme provides credit-linked capital subsidy of 35% of the eligible project cost, subject to a maximum of Rs. 10 lakh per unit. 

Till 30 June 2025, 1,44,517 micro food processing enterprises across the country were sanctioned assistance under this scheme. Alongside financial aid, the Capacity Building component of PMFME supports Entrepreneurship Development Skilling (EDP+) and product-specific training for entrepreneurs, trainers, district resource persons, and other groups. By the same date, 1,16,666 beneficiaries had been trained nationwide.

By encouraging value addition, modernisation, and better market connectivity, these initiatives catalyse the expansion and formalisation of micro and small enterprises. As per a Deloitte report, the sector is valued at nearly US$160 billion and illustrates India’s economic ascent, marked by its position as the fifth-largest economy and the doubling of per capita income to Rs 1.97 lakh over nine years.