Lok Sabha Question No. 1932 (UNSTARRED), answered on 2025-07-31
Subject: Infrastructure and Investment Support for Food Processing Industries
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Shri Naveen Jindal

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 1932

ANSWERED ON 31 ST  JULY, 2025

## INFRASTRUCTURE AND INVESTMENT SUPPORT FOR FOOD PROCESSING INDUSTRIES

## 1932. SHRI NAVEEN JINDAL:

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

- (a) whether the Government is taking steps to boost India's position as a global leader in the food processing sector;

(b) if  so,  the  details  thereof and the key initiatives taken by the Government to support farmers and enhance agricultural value through food processing;

(c) the extent to which India's status as a leading producer of fruits, vegetables and millets has contributed to this growth;

- (d) whether the sector has seen growth in export potential and employment opportunities in recent years and if so, the details thereof; and

(e) whether the Government plans to expand infrastructure and investment support under the Make in India campaign for food processing industries and if so, the details thereof?

## ANSWER

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

(a) & (b): Ministry of Food Processing is implementing a Central Sector Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) to support creation of global food manufacturing champions and support Indian brands of food products in international market. The scheme is being implemented over a six-year period from 2021-22 to 2026-27 with an outlay of Rs.10,900 crores.

With the objective to boost investments and sourcing of Indian food products, MoFPI had organized three editions of World Food India (WFI) during the years 2017, 2023 and 2024 which serve a premier platform to highlight investment opportunities and advancements in food processing by facilitating their integration into domestic and international markets. The event brings global food processing companies, innovators, supply chain stakeholders, equipment manufacturers, etc. on a collaborative platform and  provide foreign companies with tie-up/ business opportunities with its Indian counterparts.

(c) & (d) : India's food processing industry has undergone rapid transformation, driven by its vast agricultural base, rising domestic demand, and supportive government policies. India is poised to emerge as a global leader in the food-processing sector, with an impressive growth trajectory. Agriculture sector forms the backbone of the India's food processing industry, India being the second largest producer of fruits and vegetables as per the Agriculture Statistics at Glance, 2023. Further, MoFPI took the initiative to encourage the use of Millets in Ready to Cook (RTC) /  Ready  to  Eat  (RTE)  products  and  incentivizing  them  under  the  Production Linked Incentive Scheme for Millet-based Products (PLISMBP) to increase usage of millets in food products and promote value addition and sales.  Food Processing sector emerged as an important segment of the Indian economy in terms of its contribution to GDP, employment and exports. Agriculture and processed food exports reached approximately USD 49.4 billion in Financial  Year  2024-25,  with  processed  food  exports  constitutes  around  20.4%.  Further, processed food export share has risen from 13.7% in 2014-15 to 20.4% in 2024-25. Among the registered  food  processing  units,  about  2.23  million  workers  are  employed  as  per  Annual Survey of Industries, 2022-23 while the unregistered segment supports 4.68 million workers as per the Annual Survey of Unincorporated Sector Enterprises, 2023-24.

- (e): With  a  view  to  promote  manufacturing  and  to  attract  investment  to  this  sector,  the Government has initiated several reforms and policy measures along with schemes to promote development  of  post-harvest  infrastructure  and  value  addition  under  the  Make  in  India campaign :-
- (i) 100% FDI was earlier permitted under the automatic route in food processing industries. In 2016-17, 100% FDI was permitted through Government approval route for trading including through e-commerce in respect of food products manufactured and / or produced in India.
- (ii) As per announcement in the Budget 2014-15, a special fund of Rs. 2,000 Crore has been set up in NABARD to provide affordable credit in designated Food Parks & food processing units to be set up in these parks.
- (iii) In respect of Ease of doing business, MoFPI is working completely on an online scheme management system from receiving of proposals to release of grant in aid.
- (iv) Further, MoFPI through implementation of the Central Sector Scheme, namely, Pradhan Mantri Kisan Sampada Yojana across the country, helps in creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet for promotion, overall development  and  growth  of  Food  Processing  Industries,  through  creation  of  employment opportunities, reducing wastage of agricultural produce, increasing the processing level and enhancing export of the processed foods.
- (v) MoFPI is also implementing a Centrally Sponsored Scheme- PM Formalisation of Micro Food Processing Enterprises Scheme for providing technical, financial and business support for setting up/upgradation of Micro Food Processing Enterprises.

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