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)

Main Body

The Production Linked Incentive PLI scheme focuses on providing incentives, such as tax benefits, GST remission, and other incentive based on the extent of production. IT to an integrated component of "make in India" towards making India a manufacturing hub. The PLI scheme has had an integrated role in the food processing industry, as follows: Role in value addition: 1) PLI encourages setting up of food processing plantsvalue addition and enhanced pricing. 2) Incentives on machinerymechanized production and economies of scale. 3) Focus on value of outputencourages processes that enhance product value. Role in employment generation: 1) Food processing processes still salting, pickling, dehydrationboosting farmer income. 2) PLI to food processing MSMEs: creating jobs in rural areas, semi-urban areas. 3) Employment to low-skilled and semi-skilled workers in paper making, yarns, yellin etc. 4) Labour intensive industrymore jobs created. Role in enhancing global competitiveness: 1) Focus on input value processes. 2) Demand-focused scheme set stressing production of commodities that are market-oriented. 3) Integration under SAMPADA, focus on export-oriented goals of a high quality standard. 4) Integration with certification and testing to enhance safety standards.

Limitations: 1) Insufficient focus on technical up-gradation. 2) Dwarfism in food processing industry. 3) Oven Preparedness of MNCs monopolizing the FMCB segment, like Huntington Unilever. Way forward: 1) Cluster based approach to food processing. 2) Encouraging innovations, new offerings. 3) Strong emphasis on quality control. 4) Encouraging producers of "health foods" any other varieties based on demand. Hence, the PLI scheme in the food processing sector has helped generate value, employment and exports. To aforementioned suggestions will boost its efficacy.

Limitations: 1) Insufficient focus on technical up-gradation. 2) Dwarfism in food processing industry. 3) Oven Preparedness of MNCs monopolizing [the FMCB segment]. Way forward: 1) Cluster based approach to food processing. 2) Encouraging innovations, new offerings. 3) Strong emphasis on quality control. 4) Encouraging producers of "health foods" any other varieties based on demand. Hence, the PLI scheme in the food processing sector has helped generate value, employment and exports. The aforementioned suggestions will boost its efficacy.

350 words1 paragraphs

Conclusion

Hence, the PLI scheme in the food processing sector has helped generate value, employment and exports. The aforementioned suggestions will boost its efficacy.

23 words

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Page 35

Topper

ISHAN BHATNAGAR

AIR 52025

Subject & Paper

GS3GS3

Topic

Agriculture and Food Security

Food processing

PLI scheme for food processing

Writing Stats

373

Total words

Paragraphs

structured and analytical

Tone