**Executive Summary**
This document is a response to a parliamentary question regarding the growth and export promotion of India's Food Processing Industries (FPI). It outlines the projected growth of the FPI sector, the role of government schemes in supporting this expansion, and measures to promote organic food, strengthen infrastructure, and increase exports. The document also includes estimated employment generation and export growth for the financial year 2026-27.
**Key Points / Main Content**
* **Projected Growth:**
* The GVA FPI Sector is projected to reach ₹2.43 lakh crore over the next two years.
* Growth is driven by schemes like PLISFPI and PMKSY, increased demand for value-added products, supply-chain improvements, and focus on exports.
* **Government Schemes (MoFPI):**
* The Ministry of Food Processing Industries (MoFPI) supports creation and expansion of processing/preservation capacity through various schemes.
* **PMKSY:** A Central Sector Umbrella Scheme implemented since 2016-17 to create post-harvest infrastructure and processing capacity. Component schemes include Integrated Cold Chain, Agro-Processing Clusters, Food Processing & Preservation Capacities, Operation Greens, Food Safety, Human Resource & Institutions, and creation of Backward and Forward Linkages (the latter two discontinued from 1st April 2021). 1607 projects approved under PMKSY as of December 2025, with 1196 projects completed.
* **PLISFPI:** Implemented from FY 2021-22 to FY 2026-27 with an outlay of ₹10,900 crore to support global food manufacturing champions. 169 applications approved as of December 2025, with beneficiaries reporting investments of ₹9,207 crore and incentives disbursed amounting to ₹2,162.55 crore.
* **PMFME:** Provides support for establishing or upgrading micro food processing enterprises. As of December 2025, 1,72,707 loans have been sanctioned with term loan amount of Rs. 14.19 thousand crores. Seed Capital support has been sanctioned for 3,74,819 women SHG members amounting to Rs. 1277.45 Crore. Trained 693 Master Trainers, 1,312 District Level Trainers, and 1,36,723 beneficiaries.
* **Employment and Export Projections:**
* Estimated employment projected to reach 26,63,809 by FY 2026-27.
* Expected export growth is projected to reach USD 12,006.92 million by FY 2026-27.
* **Export Promotion Strategies (APEDA):**
* The Agricultural and Processed Food Products Export Development Authority (APEDA) provides financial assistance for export.
* Assistance is provided under the Agriculture and Processed Foods Export Promotion Scheme in three areas: infrastructure development, quality development, and market promotion.
* APEDA implements the National Programme for Organic Production (NPOP).
* APEDA facilitates exporter participation in international and domestic trade fairs.
**Impact Analysis**
**Stakeholder: Farmers and MSMEs**
* **Impact:** Government schemes aim to increase demand for farm produce, leading to better prices and increased farm gate profitability. Schemes also contribute to income increase through better price realization, value addition, and wastage reduction.
* **Action Required:** Farmers and MSMEs can apply for financial assistance and participate in programs that promote organic farming and market access.
**Stakeholder: Food Processing Industries**
* **Impact:** Schemes like PLISFPI and PMFME are designed to support the growth and expansion of food processing enterprises through incentives, subsidies, and infrastructure development.
* **Action Required:** Food processing companies can apply for benefits under various schemes to increase processing capacity, improve quality, and boost exports.
**Stakeholder: Women Self-Help Groups (SHGs)**
* **Impact:** The PMFME scheme provides Seed Capital support to women SHG members.
* **Action Required:** Women SHG members can apply for Seed Capital and take advantage of the training programs offered.
**Stakeholder: Exporters**
* **Impact:** APEDA provides financial assistance and promotional opportunities to enhance their visibility and access new markets.
* **Action Required:** Exporters should register with APEDA and participate in trade fairs and export promotion forums.
Key Entities Referenced
Ministry of Food Processing Industries (MoFPI): Supports the creation and expansion of food processing/preservation capacity through implementation of various schemes for overall development of the sector.
Pradhan Mantri Kisan Sampada Yojana (PMKSY): A Central Sector Umbrella Scheme to create post-harvest infrastructure and processing capacity in the food processing sector. It comprises various component schemes such as Integrated Cold Chain and Value Addition Infrastructure, Creation of Infrastructure for Agro-Processing Clusters, etc.
Production Linked Incentive (PLI) Scheme for Food Processing Industries (PLISFPI): Scheme to support the creation of global food manufacturing champions, commensurate with India's natural resource endowment.
Prime Minister Formalization of Micro Food Processing Enterprises (PMFME) scheme: Scheme to provide support for establishing or upgrading micro food processing enterprises.
Agricultural and Processed Food Products Export Development Authority (APEDA): Provides financial assistance for export of APEDA's scheduled products to its registered exporters and implements the National Programme for Organic Production (NPOP).
GOVERNMENT OF INDIA
MINISTRY OF FOOD PROCESSING INDUSTRIES
LOK SABHA
UNSTARRED QUESTION NO. 1071
ANSWERED ON 05TH FEBRUARY, 2026
GROWTH AND EXPORT PROMOTION OF FPI
1071. SHRI TEJASVI SURYA:
Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:
(a) the projected growth of India's Food Processing Industry (FPI) over the next two years
along with the major factors driving this growth;
(b) the role of Government schemes such as the Production Linked Incentive (PLI) Scheme
and Pradhan Mantri Kisan Sampada Yojana (PMKSY) in supporting this expansion;
(c) the steps being taken to promote the rapidly growing organic food market, particularly
for farmers and MSMEs;
(d) the measures undertaken to strengthen processing, storage and cold chain infrastructure
to reduce post-harvest losses,
(e) the estimated employment generation and export growth expected from the food
processing sector during the Financial Year 2026; and
(f) the strategies in place to increase exports of value-added and organic food products, and
the expected impact on farmers’ income and India's share in global food markets?
ANSWER
THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES
(SHRI RAVNEET SINGH)
(a): The Gross Value Added (GVA) data is released by the Ministry of Statistics and
Programme Implementation. Based on the previous data on the GVA of the Food Processing
Industries (FPI) Sector, the GVA FPI Sector is projected to reach ₹2.43 lakh crore over the next
two years considering CAGR of last 8 years. The growth is expected to be driven by
interventions such as the Production Linked Incentive Scheme for Food Processing Industries
(PLISFPI), Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) and Prime Minister
Formalization of Micro Food Processing Enterprises (PMFME) and Agri-Infra Fund of
Ministry of Agriculture and Farmers Welfare, increased demand for value-added and processed
food products, improvement in supply-chain and cold-chain infrastructure, and growing focus
on exports and food safety standards.
(b) to (d): The Ministry of Food processing Industries (MoFPI) supports the creation and
expansion of the processing/preservation capacity through implementation of various schemes
for the overall development of food processing sector, including creation of modern
infrastructure with efficient supply chain management from farm gate to retail outlets, to reduce
post-harvest losses and to increase the level of processing. The schemes being implemented by
MoFPI are as follows:
MoFPI is implementing a Central Sector Umbrella Scheme- PMKSY since 2016-17
to create post-harvest infrastructure and processing capacity. The component schemes under
PMKSY are (i) Integrated Cold Chain and Value Addition Infrastructure, (ii) Creation of
Infrastructure for Agro-Processing Clusters, (iii) Creation / Expansion of Food Processing &
Preservation Capacities (iv) Operation Greens (v) Food Safety and Quality Assurance -
Food Testing Laboratories (FTL) (vi) Human Resource & Institutions- Research &
Development (vii) Mega Food Parks (the component has been discontinued with effect from
01.04.2021 with provision for committed liabilities only) and (viii) Creation of Backward
and Forward Linkages (the component has been discontinued from 1st April 2021). MoFPIprovides credit linked financial assistance (capital subsidy) in the form of grants-in-aid to
the eligible applicants as per the scheme guidelines and as on December 2025, 1607 projects
have been approved under PMKSY out of which 1196 projects have been completed.
MoFPI is implementing the PLISFPI for the period FY 2021-22 to FY 2026-27 with
an approved outlay of ₹10,900 crore, to support the creation of global food manufacturing
champions, commensurate with India’s natural resource endowment, and to support Indian
brands of food products in international markets. By 31st December, 2025, 169 applications
have been approved under the scheme, with beneficiaries reporting investments of ₹9,207
crore and incentives disbursed amounting to ₹2,162.55 crore.
Furthermore, to provide comprehensive support for establishing or upgrading micro
food processing enterprises assistance is provided through PMFME scheme. As of 31st
December 2025, 4,04,062 applications have been sent to banks and 1,72,707 loans have been
sanctioned with term loan amount of Rs. 14.19 thousand crores. Seed Capital support has been
sanctioned for 3,74,819 women SHG members amounting to Rs. 1277.45 Crore. Additionally,
the programme has successfully trained 693 Master Trainers, 1,312 District Level Trainers, and
1,36,723 beneficiaries across 36 States and Union Territories.
With creation of food processing infrastructure under the above schemes, the demand for
farm produce, which is raw material for food processing industries, increases leading to better
prices to farmers including MSMEs and increasing farm gate profitability. The above scheme
has significantly contributed at micro level (farmers and cold chain owners) by increasing
income through better price realization, value addition and wastage reduction etc. across the
country. The assistance under aforementioned schemes and programmes is also available for
the organic food products.
(e): As per the latest report of Annual Survey of Industries (ASI) for the year 2023-24
released by Ministry of Statistics and Programme Implementation (MoSPI), the estimated
employment is projected to reach 26,63,809 by the financial year 2026-27 considering CAGR
of last 8 years. Further, as per the data released by Directorate General of Commercial
Intelligence & Statistics (DGCI&S) under Ministry of Commerce and Industry, the expected
export growth of food processing industry is projected to reach USD 12,006.92 million by the
financial year 2026-27 considering CAGR of last 8 years.
(f): Agricultural and Processed Food Products Export Development Authority (APEDA)
under Ministry of Commerce and Industries provides financial assistance for export of
APEDA’s scheduled products to its registered exporters. Financial assistance is provided under
Agriculture and Processed Foods Export Promotion Scheme of APEDA for the 15th Finance
Commission Cycle (2021-22 TO 2025-26) in three broad areas, namely
i. Scheme for infrastructure Development
ii. Scheme for Quality Development
iii. Scheme for Market Promotion
Further, APEDA is implementing the National Programme for Organic Production (NPOP).
The programme involves the accreditation of certification bodies, standards for organic
production, promotion of organic farming and marketing, etc. Under NPOP, operators are
certified as per their scope of operation such as production, processing and trading. In order to
have greater visibility of the Indian exporters, food producers and engaging new business
partners in the global market, APEDA provides opportunities to them to market their products
in International and domestic trade fairs. APEDA develops a vibrant Indian pavilion during the
trade fairs inviting participant exporters for various international and national trade event
organized by APEDA. A dedicated export promotion forum is established by APEDA for
specific products to streamline efforts and resources towards boosting exports.
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