Over 2 lakh micro food processing enterprises have received credit-linked subsidy under the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme since its launch in 2020, according to Food Processing Industries Minister Chirag Paswan. The combined investment stands at ₹20,300 crore, with a total subsidy of around ₹6,000 crore, generating nearly 11 lakh direct and indirect employment opportunities.
Scheme Impact and Beneficiary Profile
Paswan, speaking at an event where he felicitated the 2nd lakh beneficiary Inderjeet Singh from Ranchi, Jharkhand, highlighted the scheme's reach. He stated:
Nearly 90 per cent of beneficiaries are first-generation entrepreneurs and 44 per cent are women entrepreneurs, while over 75,000 PMFME-supported enterprises have entered the formal economy through registrations such as Udyam Aadhaar, Udyam Assist, FSSAI and GST.
This formalisation marks a significant shift for India’s fragmented food processing sector, bringing small-scale producers into the regulatory and credit net.
Financial and Employment Metrics
The scheme, which began in 2020, has disbursed around ₹6,000 crore in subsidies, leveraging total project investments of over ₹20,300 crore. The employment impact is substantial: nearly 11 lakh jobs created across the value chain.
| Metric | Value |
|---|---|
| Enterprises covered | Over 2 lakh |
| Total investment | ₹20,300 crore |
| Subsidy disbursed | ~₹6,000 crore |
| Employment generated | ~11 lakh (direct + indirect) |
| First-generation entrepreneurs | ~90% |
| Women entrepreneurs | 44% |
| Formalized enterprises | Over 75,000 |
| SHG members supported | Over 4.18 lakh |
| Incubation centres approved | 80 across 27 states/UTs |
| Incubation centres commissioned | 32 |
| Beneficiaries trained | Over 1.76 lakh (77% women) |
Capacity Development and State Performance
Paswan commended the performance of leading states including Bihar, Maharashtra, Uttar Pradesh, Tamil Nadu, and Madhya Pradesh. The scheme’s Seed Capital support has reached over 4.18 lakh Self Help Group members. A network of 80 Common Incubation Centres has been approved across 27 states and union territories, of which 32 are already commissioned. Training efforts have covered over 1.76 lakh beneficiaries, with 77 per cent being women — underscoring the scheme’s focus on empowering female entrepreneurs.
Future Outlook: Extension and PMFME 2.0
The PMFME scheme, originally launched in 2020, has been extended until September this year (2026), according to the Minister. Paswan added that the Ministry is considering launching PMFME 2.0 with suitable changes to attract more investments in the sector. The achievement of 2 lakh beneficiaries demonstrates that this vision is translating into measurable outcomes, he said.
For manufacturing executives and industrial procurement directors, the scheme’s success signals growing formalisation and capacity expansion in India’s food processing industry. With over 2 lakh enterprises now operational and receiving government support, the ecosystem for processed food production, packaging, and distribution is expanding rapidly. The planned PMFME 2.0 could further accelerate investments in automation, cold chain, and quality infrastructure, creating new opportunities for OEM suppliers and technology providers in the food manufacturing space.
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