Lok Sabha Question No. 2939 (UNSTARRED), answered on 2024-08-08
Subject: Contribution of FPIs in GDP
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Dr. Pradeep Kumar Panigrahy

## GOVERNMENT OF INDIA

## MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION No.2939

ANSWERED ON 08 TH  AUGUST, 2024

## CONTRIBUTION OF FPIS IN GDP

## 2939.  DR. PRADEEP KUMAR PANIGRAHY:

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

- (a) the details of the change in contribution of food processing industries to the GDP during the last five years;
- (b) the details of growth in the sector, State-wise including Odisha;
- (c) whether the Government has introduced measures to increase foreign investment in the sector and if so; the details thereof: and
- (d) whether the Government has taken any initiative for the promotion of micro food processing enterprises and if so, the details thereof?

## ANSWER

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

- (a) Contribution of food processing industries to Gross Value Added (GVA) during the last five years are as follows:
- (b) The growth in Gross Value Added (GVA) of Food Processing Sector for the last five years are as below. However, State-wise information is not available.

| Year                |   2018-19 |   2019-20 |   2020-21 |   2021-22 |   2022-23* |
|---------------------|-----------|-----------|-----------|-----------|------------|
| Share in Percentage |      1.85 |      1.48 |      1.55 |      1.37 |        1.3 |

| Growth in GVA of Food Processing Industries (Rs. In Crore)   | Growth in GVA of Food Processing Industries (Rs. In Crore)   | Growth in GVA of Food Processing Industries (Rs. In Crore)   | Growth in GVA of Food Processing Industries (Rs. In Crore)   | Growth in GVA of Food Processing Industries (Rs. In Crore)   | Growth in GVA of Food Processing Industries (Rs. In Crore)   |
|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|
| Year                                                         | 2018-19                                                      | 2019-20                                                      | 2020-21                                                      | 2021-22                                                      | 2022-23*                                                     |
| GVA                                                          | 2,35,710                                                     | 1,95,909                                                     | 1,96,332                                                     | 1,89,532                                                     | 1,91,967                                                     |
| Growth(%)                                                    | 22.41                                                        | -16.89                                                       | 0.22                                                         | -3.46                                                        | 1.29                                                         |

*As  per  First  Revised  Estimates  of  National  Accounts  Division,  Central  Statistics  Office,  Ministry  of  Statistics  and Programme Implementation

(c)      In order to enhance the foreign investment in Food Processing Sector, the following measures have been taken by the Ministry of Food Processing Industries (MoFPI):

i.  Exempting all the processed food items from the purview of licensing under the Industries (Development and Regulation) Act, 1951;

ii. 100% Foreign Direct Investment (FDI) permitted through automatic route for food processing sector subject to sectoral regulations;

iii. 100% Foreign Direct Investment, under Government approval route, for trading including through e-commerce, in respect of food products manufactured or produced in India; and iv. Lower GST for raw and processed products; more than 71.7% food products under various chapter heads/sub-heads are covered in lower tax slab of 0% & 5%.

(d)      MoFPI provides financial, technical and business support for setting up/ upgradation of micro food processing enterprises under Pradhan Mantri Formalization of Micro food processing Enterprises (PMFME) scheme. The scheme is operational for a period of five years from 2020-21 to 2024-25 with total outlay of Rs 10,000 Crore. A total of 92,549 micro food processing enterprises have been approved for assistance under PMFME as on 30 th June, 2024.

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