The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme has significantly impacted grassroots entrepreneurship in India, according to Union Minister Mr. Ravneet Singh. Speaking in the Rajya Sabha, he highlighted that the initiative has enabled small entrepreneurs, farmers, and women-led units to increase their turnover by 1.7 times.
Scheme Overview and Support Provided
Launched with an outlay of ₹10,000 crore (US$ 1.2 billion), PMFME offers a range of support measures including subsidies, technology integration, access to credit, and enterprise-level assistance. The scheme aims to help micro businesses expand production, strengthen market linkages, and scale operations effectively. Nearly 40 percent of beneficiaries are women-led enterprises, underscoring the scheme’s focus on inclusion and rural empowerment.
For example, an entrepreneur with an annual turnover of ₹10 lakh (US$ 12,050) can potentially increase it to around ₹17 lakh (US$ 20,480) through the structured financial support and capacity-building measures offered under PMFME.
Complementary Initiatives
In addition to PMFME, a Production-Linked Incentive (PLI) scheme of ₹10,000 crore (US$ 1.2 billion) is further driving growth in India’s food-processing sector. As of October 31, 2025, over ₹4,306 crore (US$ 518.7 million) has been allocated to states and Union Territories to ensure effective implementation on the ground.
Impact and Monitoring
Independent evaluations by the Ministry of Food Processing Industries indicate that PMFME has successfully enhanced productivity, enabled scaling of operations, and helped entrepreneurs access new markets, supporting the government’s “Vocal for Local” vision. Regular reviews with state governments, Union Territories, banks, and State Level Bankers’ Committees (SLBCs) ensure accountability, timely fund utilisation, and robust monitoring.
By integrating financial assistance, technology, and mentoring, the PMFME scheme is fostering a resilient and competitive food-processing ecosystem, strengthening rural economies, and promoting inclusive growth across India.
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