Lok Sabha Question No. 355 (UNSTARRED), answered on 2017-07-18
Subject: Employment in Food Processing
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: DODDAALAHALLI KEMPEGOWDA SURESH, B.N. CHANDRAPPA

## GOVERNMENTOF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 355

ANSWER ON-18 TH  JULY, 2017

## EMPLOYMENT IN FOOD PROCESSING

## 355. SHRI D.K. SURESH:

- SHRI B.N. CHANDRAPPA: Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:
- (a) whether  it  is  a  fact  that  Food  Processing  is  one  of  the  major  employment  intensive industries in the country and if so, the details thereof;
- (b) the details of employment opportunities generated during the last three years, year-wise;
- (c) whether  the  Government  is  taking  any  measures  to  increase  the  employment  generation capacity by promoting both domestic and foreign investment in food processing sector; and
- (d) if so, the details thereof and the investment made by both domestic and foreign entities in the sector during the last three years, year- wise?

## ANSWER

## THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SADHVI NIRANJAN JYOTI)

(a)&(b): As per the Annual Survey of Industries 2014-15 conducted by Central Statistics Office, Ministry  of  Statistics  and  Programme  Implementation,  Food  Processing  is  one  of  the  major employment  intensive  industries  constituting  12.77  per  cent  of  employment  generated  in  all manufacturing  factories  registered  under  Factories  Act  1948.  The  total  number  of  persons engaged in such food processing industries was 17.73 lakh in 2014-15. As per the NSSO 67 th Round,  2010-11,  total  number  of  persons  engaged  in  unincorporated  enterprises  of  food processing industries was 47.9 lakh. The details of employment generated during the last three years, year-wise are as follows:

| Year                                                                                                                | 2012-13                                                                                                             | 2013-14                                                                                                             | 2014-15                                                                                                             |
|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|
| Persons (in lakh)                                                                                                   | 16.89                                                                                                               | 17.41                                                                                                               | 17.73                                                                                                               |
| Source: Annual Survey of Industries, Central Statistics Office, Ministry of Statistics and Programme Implementation | Source: Annual Survey of Industries, Central Statistics Office, Ministry of Statistics and Programme Implementation | Source: Annual Survey of Industries, Central Statistics Office, Ministry of Statistics and Programme Implementation | Source: Annual Survey of Industries, Central Statistics Office, Ministry of Statistics and Programme Implementation |

(c)&(d): As per the extant Policy, FDI up to 100%, under the automatic route, is allowed in food processing  industries.  Also,  100%  FDI  is  permitted  under  Government  approval  route  for trading,  including  through  e-commerce,  in  respect  of  food  products  manufactured  and/or produced in India. To encourage the development of food processing industries, Government has provided various  fiscal  incentives  in  terms  of  exemption  of  taxes.  A  special  fund  of  Rs.  2000 crore  has  also  been  created  with  NABARD  to  provide  affordable  credit  to  entrepreneurs  for setting up of  food processing units in designated Food Parks. Food and agro-based processing units  and cold chain  infrastructure have  been classified under agriculture activities  for Priority Sector Lending (PSL). As per the Annual Survey of Industries conducted by Central Statistics Office,  Ministry  of  Statistics  and  Programme  Implementation,  the  Invested  Capital  in  Food Processing  Industries  registered  under  Factories  Act  1948  during  the  last  three  years  is  as follows:

| Year                                                                                                                | 2012-13                                                                                                             | 2013-14                                                                                                             | 2014-15                                                                                                             |
|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|
| Invested Capital (Rs. Crore)                                                                                        | 3,11,977.3                                                                                                          | 3,31,925.9                                                                                                          | 3,68,443.6                                                                                                          |
| Source: Annual Survey of Industries, Central Statistics Office, Ministry of Statistics and Programme Implementation | Source: Annual Survey of Industries, Central Statistics Office, Ministry of Statistics and Programme Implementation | Source: Annual Survey of Industries, Central Statistics Office, Ministry of Statistics and Programme Implementation | Source: Annual Survey of Industries, Central Statistics Office, Ministry of Statistics and Programme Implementation |

According to the data provided by the Department of Industrial Policy and Promotion (DIPP), the  year-wise  details  of  Foreign  Direct  Investment  (FDI)  equity  inflows  received  in  food processing industries sector are as follows:

| Year                                               | 2014-15                                            | 2015-16                                            | 2016-17                                            |
|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|
| FDI Equity inflows (US $ Million)                  | 515.86                                             | 505.88                                             | 727.22                                             |
| Source: Department of Industrial Policy &Promotion | Source: Department of Industrial Policy &Promotion | Source: Department of Industrial Policy &Promotion | Source: Department of Industrial Policy &Promotion |

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