As India celebrates Azadi Ka Amrit Mahotsav, marking 75+ years of independence and progress, one of the standout achievements in the recent drive toward inclusive economic growth is the impactful rollout of the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme. This centrally sponsored scheme, launched in 2020, continues to transform India’s vast unorganised food processing sector by extending credit-linked subsidies and support to micro enterprises.
About the PMFME Scheme
The PMFME Scheme, launched by the Ministry of Food Processing Industries (MoFPI), aims to formalize two lakh micro food enterprises over the period 2020-21 to 2025-26, with a financial outlay of ₹10,000 crore. It provides credit-linked subsidies of up to 35% of eligible project costs (with limits), alongside support for capacity building, branding, marketing, and skill training.
What sets this scheme apart is its focus on local, traditional, and small-scale processors, many of whom have operated informally for years. These include street vendors, home-based units, small-scale processors, and women-led enterprises—groups that are typically underserved by formal credit systems.
Driving Financial Inclusion and Growth
The latest data indicates a robust uptake of the scheme in FY 2024-25, showcasing how targeted government initiatives can play a powerful role in bringing micro businesses into the formal economy. With over 51,000 loans disbursed in just three months, the PMFME Scheme is helping micro entrepreneurs gain access to formal credit, expand operations, modernize infrastructure, and build stronger market linkages.
The momentum seen this year reflects not only effective implementation by state and central agencies, but also the increased confidence of micro enterprises in government support systems.