Investment in Food Processing Sector

Mar 15: 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 incentivizing 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/formalizing 2 lakh micro informal units and creation of 9 lakh employment. The government has permitted 100% foreign direct investment(FDI) under the automatic route.

The total FDI received in the food processing sector from April 2014 till December 2021 is US$ 5.15 billion. Also through 582 completed projects under various component schemes of PMKSY, Rs. 8562.92 crores of investment has been leveraged as of 31.01.2022.

The food processing sector is a labor-intensive sector. As per the Annual Survey of Industries (ASI) 2018-19, food processing was ranked 1st in total persons engaged in the manufacturing sector. The top five manufacturing sectors with the number of persons engaged were:

S.No.SectorNo. of persons engaged (in lakhs)Share in total employment in %
1Food Products20.0512.32
3Wearing Apparel11.977.35
4Basic Metals11.497.06
5Motor Vehicles, Trailers & Semi-Trailers10.956.73

Source: ASI 2018-19

(d):      Number of units and employment in registered food processing sector for last three years as reported in the ASI data were as under: –

Sl. No.YearNo. of unitsEmployment (figures in lakh)

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

This information was given by Minister of State for M/o Food Processing Industries, Shri Prahlad Singh Patel in a written reply in Lok Sabha today


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