Lok Sabha Question No. 2247 (UNSTARRED), answered on 2022-03-15
Subject: Investment in Food Processing Sector
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Hasmukhbhai Somabhai Patel

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 2247

ANSWERED ON. 15 TH  MARCH, 2022

## INVESTMENT IN FOOD PROCESSING SECTOR

## 2247.  SHRI PATEL HASMUKHBHAI SOMABHAI:

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

- (a) whether  any  measures  are  being  taken  by  the  Government  to  increase  job  creation capabilities by promoting domestic and foreign investment in the food processing sector;
- (b) if so, the details of funds invested by both domestic and foreign agencies in the said sector during the above period;
- (c) whether food processing is one of the major job intensive industries in the country and if so, details thereof; and
- (d) the details of the employment opportunities generated during each of these three years?

## ANSWER

## THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SHRI PRAHLAD SINGH PATEL)

- (a): The Ministry of Food Processing Industries is implementing the Pradhan Mantri Kisan Sampada Yojana (PMKSY) for augmenting processing/preservation capacity, creating off-farm employment, leveraging domestic investment and increasing value addition to the economy. Recently, the Production Linked Incentive (PLI) Scheme has been launched for creating global food champions through incentivising investment in the food processing sector and creating employment. The Pradhan Mantri-Formalisation of Micro Enterprises (PM-FME) scheme is also  being  implemented  since  2020-21  which  aims  at  upgrading/  formalising  2  lakh  micro informal units and creation of 9 lakh employment . The government has permitted 100% foreign direct investment(FDI) under the automatic route.
- (b): The total FDI received in the food processing sector since April 2014 till December 2021  is  US$  5.15  billion.  Also  through  582  completed  projects  under  various  component schemes of PMKSY, Rs. 8562.92 crore of investment has been leveraged as on 31.01.2022.
- (c): Yes Sir. Food processing sector is a labour intensive sector. As per theAnnual Survey of  Industries  (ASI)  2018-19,  food  processing  was  ranked  1st  in  total  persons  engaged  in manufacturing sector.  The  top  five  manufacturing  sectors  with  number  of  persons  engaged were:
- (d): Number of units and employment in registered food processing sector for last three years as reported in the ASI data were as under: -

| S.No.   | Sector                                   |   No. of persons engaged (in lakhs) | Share in total employment in%   |
|---------|------------------------------------------|-------------------------------------|---------------------------------|
| 1       | Food Products                            |                               20.05 | 12.32                           |
| 2       | Textiles                                 |                               16.73 | 10.28                           |
| 3       | Wearing Apparel                          |                               11.97 | 7.35                            |
| 4       | Basic Metals                             |                               11.49 | 7.06                            |
| 5       | Motor Vehicles, Trailers & Semi Trailers |                               10.95 | 6.73                            |
|         | Total                                    |                              162.8  |                                 |

Source: ASI 2018-19

|   Sl. No. | Year    | No. of units   |   Employment (figures in lakh) |
|-----------|---------|----------------|--------------------------------|
|         1 | 2016-17 | 39,740         |                          18.53 |
|         2 | 2017-18 | 40,160         |                          19.33 |
|         3 | 2018-19 | 40,579         |                          20.05 |

In addition, 51.11 lakh number of persons were engaged in the food processing sector in the unincorporated sector/informal sector, as per the National Sample Survey 2015-16 report.

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