AY

Aryan YadavAIR 31· 2025

Question 14GS3GS3

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)

Open scan (p.35)

Main Body

Production Linked Incentive Scheme PLI provides for incentives to industries based on incremental sales. Positive Impact on Food processing Industry: Value Addition: APE: Will reach $535 billion by end of 2025 (2) Enabled access to domestic machinery reducing import reliance (3) Boosting of cold chain storage to reduce high post harvest losses (15-20.1 per ICAR) (4) Creation of innovative indigenous technology Eg. Sale n Fresh for Apples from Himachal Pradesh Employment Generation: (1) FPI accounts for 12.5.1 share of employment in organised manufacturing sector (2) Helped boost worker productivity by 9-5% by transition from agriculture to manufacturing (3) Reduction of high disguised unemployment in agriculture Global Competitiveness: (1) Processed food products now 24.1 share of agricultural exports

2Extension of storage infrastructure via smart warehouses, Pioskon (remote storage) helped boost export competitiveness

Shortfalls: (1) Benefits mainly to major players but 70.1% of FPI is in unorganised sector (2) Need to address shortfall of skilled labour => 13 lakh needed by 2030 MOFA (3) High sales requirement excludes many small FPI (4) Poor infrastructure (20.1% freight via roads) hurts export competitiveness PLI share is great stuck towards expanding FPI & achieving vision of doubling farmers income (Palwai committee)

197 words1 paragraphs

Conclusion

PLI share is great stuck towards expanding FPI & achieving vision of doubling farmers income (Palwai committee)

17 words

Topper

Aryan Yadav

AIR 312025

Subject & Paper

GS3GS3

Topic

Agriculture and Food Security

Food Processing

PLI Scheme - Impact Assessment

Writing Stats

214

Total words

1

Paragraphs