Lok Sabha Question No. 1546 (UNSTARRED), answered on 2019-02-12
Subject: Contribution of FPS in GDP
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: SANKAR PRASAD DATTA

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 1546

ANSWERED ON 12 TH  FEBRUARY, 2019

## CONTRIBUTION OF FPS IN GDP

## 1546.  SHRI SANKAR PRASAD DATTA:

Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:

- (a) whether  the  contribution  of  the  Food  Processing  Sector  (FPS)  to  the  Gross  Domestic Product (GDP) is rising over the years;
- (b) if so, the details thereof during the last three years and the current year;
- (c) whether  any  target  has  been  set  up  to  create  employment  opportunities  in  the  Food Processing Sector and increase its share in GDP;
- (d) if so, the details thereof and the steps taken to achieve the said targets; and
- (e) if not, the reasons therefor?

## ANSWER

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

(a) & (b):    As per the estimates of the National Accounts Statistics (NAS), Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation, the share of food processing sector in gross domestic product at current prices during 2014-15 to 2017-18 were as follows:

| Year    |   Share of GDP in FPS (%) |
|---------|---------------------------|
| 2014-15 |                       1.3 |
| 2015-16 |                       1.3 |
| 2016-17 |                       1.5 |
| 2017-18 |                       1.5 |

(c) to (e):   The Government has taken a number of measures to promote overall growth of food processing sector and generate employment opportunities. It has permitted 100% Foreign Direct Investment (FD I) through automatic route in manufacturing of food products and 100% FDI under Government approval route for retail trading, including through e-commerce, in respect of food products produced and/or manufactured in India, a special fund of Rs.2000 crore has been created in National Bank for Agriculture and Rural Development (NABARD) to provide affordable credit to food processing projects/units, food & agro-based processing units and cold chain infrastructure has  been  classified  as  agriculture  activity  for  Priority  Sector  Lending  (PSL),  lower  Goods  & Service Tax (GST) rates for majority of food products have been fixed,   100 percent income tax exemption from profit derived from activities such as post-harvest value addition to agriculture by FPOs' having annual turnover up to Rs.100 crores have been provided to attract investment in the sector.

Further, the Ministry of Food Processing Industries (MoFPI) is implementing an innovative Central  Sector  Umbrella  Scheme-Pradhan  Mantri  Kisan  SAMPADA  Yojana  (PMKSY).  The period of implementation of the PMKSY is 2016-20 with a total outlay of Rs.6000 crore. The PMKSY has seven component schemes viz; (i) Mega Food Parks, (ii) Integrated Cold Chain and Value Addition Infrastructure, (iii) Infrastructure for Agro-Processing Clusters, (iv) Creation of Backward  and  Forward  Linkages, (v)  Creation/Expansion  of  Food  Processing  &  Preservation Capacities, (vi) Food Safety and Quality Assurance Infrastructure and (vii) Human Resources and Institutions.  Under PMKSY, capital subsidy in the form of grants-in-aid ranging from 35% to 75% of the eligible cost of the project subject to maximum specified limit is provided to investors under the various schemes for undertaking infrastructure, logistic projects and setting up of food processing units in the country. The MoFPI has recently launched a new Central Sector Scheme 'Operation Greens'' for integrated development of Tomato, Onion and Potato (TOP) crops value chain,  with  an  outlay  of  Rs.500  crore  to,  inter  alia,  promote  Farmers  Producers  Organizations (FPO), agri-logistics, processing facilities and professional management of FPOs.

The PMKSY envisage creation of direct and indirect employment for 5,30,500 persons by 2020.

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