Examine the scope of the food processing industries in India. Elaborate the measures taken by the government in the food processing industries for generating employment opportunities.

GS 3

Economy

2025

15 Marks

India’s food processing sector is one of the fastest-growing industries, poised to reach US $ 1,274 billion by 2027, up from US$ 866 billion in 2022.

The sector contributes significantly to the economy, accounting for 8.8% of GVA in manufacturing, 8.39% in agriculture, 13% of India’s exports, and 6% of total industrial investment

Scope of Food Processing Industries in India

Aspect	Data/Details
Strong raw material base	India produces ~230 million tonnes of milk annually (25% of global output) and 11.8 million tonnes of spices (FY24), ranking first in both. It is the second-largest producer of fruits (204 MT) and vegetables (200 MT), and ranks second in egg production with 138 billion eggs (2023-24).
Agro-climatic diversity	With 127 agro-climatic zones, India produces 330 MT of foodgrains (2022-23), 26 MT of pulses, 17 MT of fish, along with diverse horticulture, dairy, and meat products ensuring continuous raw material supply.
Rising domestic demand	Processed food consumption projected to reach US$ 1.2 trillion by 2025–26, driven by urbanisation and a growing middle class.
Export and FDI potential	Food processing contributes 13% of India’s exports and attracted ₹1.12 lakh crore (US$ 13.1 billion) FDI between April 2000–March 2025.
Future growth trajectory	Under Viksit Bharat 2047, the sector is projected to surpass US$ 2,150 billion, reflecting long-term potential.

Government Measures to Promote Food Processing and Employment

PM Kisan Sampada Yojana (PMKSY)
- Umbrella scheme with allocation of ₹4,600 crore (till 2026).
- Components include Mega Food Parks, Cold Chains, Agro-Processing Clusters, and Operation Greens.
- As of Feb 2025: 1608 projects approved, including 41 Mega Food Parks and 394 Cold Chains, disbursing ₹6,198.76 crore.
- Impact: Large-scale employment creation, reduced post-harvest losses, better farmer income.
Production Linked Incentive Scheme for Food Processing (PLISFPI)
- Outlay: ₹10,900 crore (2021–27).
- Supports RTC/RTE foods, millet-based products, processed fruits & vegetables, marine products, and mozzarella cheese.
- As of 2024: ₹8,910 crore invested across 213 locations, generating 2.89 lakh jobs and boosting exports of Indian brands.
- Reimburses up to 50% of expenditure on international branding and marketing.
PM Formalisation of Micro Food Processing Enterprises (PMFME)
- Outlay of ₹10,000 crore, extended till 2025–26.
- Targets 2 lakh micro-enterprises, adopting “One District One Product” approach.
- Provides credit-linked subsidies, modernisation, and skill training.
- Impact: Formalisation of unorganised sector, improved credit access, rural employment.
Mega Food Parks and Infrastructure Push
- Plug-and-play infrastructure in agriculturally rich areas.
- Recognised under Harmonised List of Infrastructure Sub-sectors (HLIS) for easier credit.
- Boosts employment at local levels through food clusters, packaging, logistics, and cold chains.
Skill Development and Quality Assurance
- Financial support for 100 new NABL-accredited food testing labs (2025-26) to improve quality and safety.
- Skill training for workers under PMFME and collaboration with state agricultural universities for product diversification.
World Food India Platform
- Biennial global event (latest in 2024) connecting Indian producers with global investors.
- Promotes investment, export linkages, and technology partnerships, positioning India as a global food hub.

Going forward, expansion of cold chain capacity, branding of Indian products abroad, and integration of MSMEs into global value chains will further boost employment, reduce wastage, enhance farmer incomes, and make India a global leader in food processing.

Answer Length

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