Why the center's PLI scheme for the food processing sector may not be a big job generator in India

In a major push towards ‘atmanirbhar Bharat’, the center earlier this year announced a production-linked incentive (PLI) scheme for 13 key sectors with a total outlay of Rs 1.97 lakh crore. In all, nine sectors have already been approved for the scheme, and the remaining are in the process of receiving nod from the cabinet. While this initiative is expected to benefit all the sectors in accelerating growth and employment, the food processing sector is being looked at with high hope, being a sunrise sector and having immense potential to absorb labor. Enough evidence is available to show that India’s urban population is rapidly diversifying their food consumption towards processed food, fruits-vegetables, fish, meat, eggs and other dairy products. This move is visible among the rural population as well, albeit at a slow pace. Changing food consumption basket along with rising per capita income, and increasing urbanisation may encourage more number of food units and investment ...