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)

PLI: Food processing Industry SAMPADA Value-addition: 1) Increase value-addition from low end to high end as milk-Card-Butter (Nandini company) 2) More processing of food company to 10% (NITI Aayog) as Mega Food park 3) Incentive based on production: lead to more capacity building-more (value addition) 4) Regional food processing: development to increase in regional value addition as Boat@COOP Daigaon Bananas Employment generation: 1) Labor-Intensive food processing creation of jobs as 12.4% employment facilitation 2) Formalization as benefit: allow for more employment 3) Regional employment creation: induce migration 4) Global competitiveness: Incentive reduce cost of item-more export orientation 5) More credit access: so focus on marketing and value addition Challenges to PLI: 1) 1.97 lac cr of funds limited utility 2) Capital-intensive investment by company - low employment elasticity 3) Used by MNCs, Big companies limited benefit to MSME

Employment generation continued: 1) Labor-Intensive food processing creation of jobs as 12.4% employment facilitation 2) Formalization as benefit: allow for more employment 3) Regional employment creation: induce migration 4) Global competitiveness: Incentive reduce cost of item-more export orientation 5) More credit access: so focus on marketing and value addition Challenges to PLI: 1) 1.97 lac cr of funds limited utility 2) Capital-intensive investment by company - low employment elasticity 3) Used by MNCs, Big companies limited benefit to MSME 4) Poor coordination with PM Sampda, TOP's scheme 5) Incentive dependent syndrome (GoM survey) 6) Structural problem unaddressed: as contract farming, Agri-marketing, Informalization Way-Ahead: 1) Coordination of all scheme 2) Employment linked incentive (@Budget 2019) for focus on job creation also 3) Structured reform: as model contract form set implement 4) MSME: focus, extra fund, technical support 5) Formalization: focus for more value addition as Udyam 6) Expert support: to MSME as total value addition

Way-Ahead continued: 1) Coordination of all scheme 2) Employment linked incentive (@Budget 2019) for focus on job creation also 3) Structured reform: as model contract form set implement 4) MSME: focus, extra fund, technical support 5) Formalization: focus for more value addition as Udyam 6) Expert support: to MSME as total value addition Structural problem unaddressed: 1) Contract Farming: Agri-marketing (Informalization Way-Ahead) 2) Coordination of all scheme 3) Employment linked incentive (@Budget 2019) for focus on job creation also 4) Structured reform: as model contract form set implement 5) MSME: focus, extra fund, technical support 6) Formalization: focus for more value addition as Udyam 7) Expert support: to MSME as total value addition Thus UK-Singh committee recommendation crucial for PLI.