Lok Sabha Question No. 3374 (UNSTARRED), answered on 2021-03-16
Subject: Growth of Processing Sector
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Khagen Murmu

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION NO. 3374 ANSWERED ON 16 TH  MARCH, 2021

## GROWTH OF PROCESSING SECTOR

## 3374.  SHRI KHAGEN MURMU:

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

- (a) whether it is true that primary processing sectors will grow at 5 to 7 per cent Quarter on Quarter (QOQ) while secondary processing sectors will grow at 10-15 per cent QOQ and thereafter with a stable compound annual growth rate (CAGR) levels of 7-10 per cent and 15-20 per cent respectively for next at least five years;
- (b) the measure taken/to be taken by the Government to minimize the risk of social unrest as the sector employs intensive manpower; and
- (c) as the consumer demand has to be fostered to pull up all supply chains, the details of the steps taken/being taken by the Government in this regards?

## ANSWER

## THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SHRI RAMESWAR TELI)

(a): Estimates of Quarterly growth of Gross Value Added (GVA) of various sectors of the economy is published by Ministry of Statistics & Programme Implementation (MoSPI). The Quarterly estimates of growth of GVA (at 2011-12 prices) for the manufacturing sector and overall GVA released for 2019-20 & 2020-21 are as under:

| Sector        | 2019-20   | 2019-20   | 2019-20   | 2020-21   | 2020-21   | 2020-21   |
|---------------|-----------|-----------|-----------|-----------|-----------|-----------|
| Sector        | Q1        | Q2        | Q3        | Q1        | Q2        | Q3        |
| Manufacturing | 0.6       | -3.0      | -2.9      | -35.9     | -1.5      | 1.6       |
| Overall GVA   | 5.0       | 4.6       | 3.4       | -22.4     | -7.3      | 1.0       |

MoSPI has informed that Quarterly estimates are not prepared for specific manufacturing sectors. However, the GVA for food processing sector has grown at a Compounded Annual Growth Rate of 9.85% for the 5 year period ending 2018-19 as compared to 8.21% for the manufacturing sector.

(b) & (c): In order to mitigate the impact on workers particularly the migrant workers and protect them against  economic  disruptions  during  the  Covid  pandemic  period,  the  Government  has  taken  several measures to provide them financial assistance, ration and other benefits.

The  Government's package included relief measures under Pradhan Mantri Garib Kalyan Yojana, Pradhan Mantri Garib Kalyan Rozgar Abhiyaan, various relief measures for MSMEs, increased allocation under MGNREGA, Atmanirbhar Bharat Rozgar Yojana, additional outlay for PM Awas Yojana (Urban). Under Aatmanirbhar Bharat Abhiyaan, the PM-Formalisation of Micro Food Processing Enterprises (PMFME) scheme has been launched to formalise and support 2 lakh micro enterprises in the country. In addition, the Emergency Credit Line Guarantee Scheme for MSMEs, businesses, MUDRA borrowers etc. has been extended till 31.3.2021.

All these measures are expected to help the workers, support the micro & small enterprises including in the food processing sector and boost the economy.

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