Significant Growth in India's Processed Food Exports and Employment Opportunities
Processed Food Sector Growth
New Delhi, Jan 9: The proportion of processed food exports within the agricultural export sector has seen a notable rise, climbing from 13.7% in 2014-15 to 20.4% in 2024-25, according to government reports released on Friday. This sector stands out as a major contributor to employment in organized manufacturing, accounting for 12.83% of jobs in the registered sector.
The Gross Value Added (GVA) from food processing has surged from Rs 1.34 lakh crore in 2014-15 to Rs 2.24 lakh crore in 2023-24, based on initial revised estimates.
The Ministry of Food Processing Industries reported that the sector has drawn in $7.33 billion in foreign direct investment (FDI) equity inflow from April 2014 to March 2025.
According to the ministry, the food processing industry is crucial for enhancing farmers' incomes and generating off-farm employment, while also minimizing post-harvest losses through investments in preservation and processing infrastructure.
The Pradhan Mantri Kisan Sampada Yojana (PMKSY) was initiated with a budget of Rs 6,000 crore for the 2016-20 period (extended to 2020-21) during the 14th Finance Commission cycle. It has been restructured and approved for continuation in the 15th Finance Commission cycle with an increased allocation of Rs 6,520 crore.
As of January 2025, 36 projects have received approval under various PMKSY schemes, with 94 projects already completed or operational, enhancing processing and preservation capacity to 28.48 lakh metric tons.
These approved projects are anticipated to attract investments of Rs 365.21 crore, benefiting approximately 1.4 lakh farmers and creating over 9,000 direct and indirect jobs.
In total, 1,618 projects have been sanctioned under different PMKSY schemes since their inception.
The Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme (PMFME), launched in June 2020, aims to promote local products with a total budget of Rs 10,000 crore. This scheme has been extended until FY 2025-26.
Since January 2025, 56,543 loans have been approved under the PMFME's credit-linked subsidy component, with Rs 240.92 crore allocated as seed capital assistance to 63,108 Self Help Group (SHG) members.
The Production Linked Incentive Scheme for the Food Processing Industry (PLISFPI) was approved by the Union Cabinet with a budget of Rs 10,900 crore, set to be implemented over six years from 2021-22 to 2026-27.
Currently, 170 proposals across various categories have been approved under PLISFPI, with reported investments totaling Rs 9,702 crore, generating approximately 3.4 lakh employment opportunities. Incentives amounting to Rs 2,162.553 crore have been disbursed under 161 eligible cases to date.