Subject: Economy

The food processing industry has emerged as a vital sector bridging India's agricultural strength with industrial growth potential, contributing significantly to the nation's economic development and food security goals.

Scope of Food Processing Industry

Sectoral Coverage:

• Encompasses processing of agricultural commodities, dairy products, meat, poultry, and marine products into value-added consumables.
• Extends across primary processing (cleaning, grading) to secondary processing (value addition) and tertiary processing (ready-to-eat products).

Economic Contribution:

• Contributes 14% to manufacturing GDP and 13% to exports, showcasing its economic significance.
• Records 8.80% and 8.39% of GVA in Manufacturing and Agriculture sectors respectively.
• Agricultural and processed food exports witnessed 13% YoY growth reaching $22.67 billion in April-February 2025.

Significance of the Industry

Employment Generation:

• Currently employs 1.93 million in registered sector and 5.1 million in unregistered sector.
• Projected to create 9 million jobs by 2024, addressing rural unemployment.

Agricultural Value Addition:

• Reduces post-harvest losses through better storage and processing facilities.
• Enhances farmers' income through value addition and market linkages.

Government Support:

• PMKSY (Pradhan Mantri Kisan Sampada Yojana) focuses on reducing food wastage and developing infrastructure.
• PLI-SFPI scheme promotes Indian food brands globally.
• PMFME Scheme supports micro food processing enterprises.

Future Potential:

• Household consumption expected to quadruple by 2030.
• India projected to become world's fifth-largest consumer of food and food technology.
• Rising export opportunities with APEDA targeting $26.56 billion exports for FY25.

The food processing industry serves as a crucial link between agriculture and manufacturing, offering immense potential for growth through initiatives like "Make in India" and "Atmanirbhar Bharat". The sector's development is vital for achieving the twin objectives of food security and doubling farmers' income.