Executive Summary:
The Ministry of Food Processing Industries is taking steps to boost India's position in the food processing sector through initiatives like the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), implemented from 2021-22 to 2026-27 with an outlay of Rs. 10,900 crores. The ministry also supports infrastructure and investment through schemes like Pradhan Mantri Kisan Sampada Yojana and PM Formalisation of Micro Food Processing Enterprises Scheme, and by encouraging foreign direct investment and ease of doing business. These efforts aim to support farmers, enhance agricultural value, and increase export potential and employment opportunities in the sector.
Key Points / Main Content:
Production Linked Incentive Scheme (PLISFPI):
* Implemented from 2021-22 to 2026-27 with an outlay of Rs. 10,900 crores.
* Aims to create global food manufacturing champions and support Indian food product brands in international markets.
* Incentivizes the use of millets in Ready to Cook (RTC) and Ready to Eat (RTE) products under the PLISMBP scheme.
World Food India (WFI) Event:
* Three editions held in 2017, 2023, and 2024.
* Serves as a platform to highlight investment opportunities and advancements in food processing.
* Facilitates integration of food processing industries into domestic and international markets.
Agriculture and Export:
* India is the second-largest producer of fruits and vegetables.
* Agriculture and processed food exports reached approximately USD 49.4 billion in Financial Year 2024-25.
* Processed food exports constitute around 20.4% of total agriculture and processed food exports, rising from 13.7% in 2014-15.
Employment:
* Registered food processing units employ about 2.23 million workers (Annual Survey of Industries, 2022-23).
* Unregistered segment supports 4.68 million workers (Annual Survey of Unincorporated Sector Enterprises, 2023-24).
Investment and Infrastructure:
* 100% FDI permitted under the automatic route in food processing industries.
* 100% FDI permitted through Government approval route for trading, including e-commerce, of food products manufactured and/or produced in India (since 2016-17).
* A special fund of Rs. 2,000 Crore has been set up in NABARD to provide affordable credit in designated Food Parks.
* MoFPI is working completely on an online scheme management system.
Government Schemes:
* Pradhan Mantri Kisan Sampada Yojana supports modern infrastructure and efficient supply chain management.
* PM Formalisation of Micro Food Processing Enterprises Scheme provides technical, financial, and business support for micro food processing enterprises.
Impact Analysis:
Farmers:
* Impact: Benefit from initiatives that enhance agricultural value through food processing, reduce wastage, and increase income.
* Action Required: Engage with government schemes like Pradhan Mantri Kisan Sampada Yojana to improve supply chain management and reduce agricultural produce wastage.
Food Processing Industries:
* Impact: Opportunities for growth through schemes like PLISFPI, increased access to credit, and infrastructure development.
* Action Required: Leverage government schemes like PLISFPI and the NABARD fund to increase production, exports, and infrastructure development.
Consumers:
* Impact: Access to a wider variety of processed food products, including millet-based options, and potentially lower prices due to increased efficiency and competition.
* Action Required: No specific action required, but can benefit from increased availability and affordability of food products.
Government:
* Impact: Achieving the goal of making India a global leader in the food processing sector, increasing employment, and boosting exports.
* Action Required: Continue to implement and monitor the effectiveness of schemes like PLISFPI and Pradhan Mantri Kisan Sampada Yojana and to encourage investment and ease of doing business in the sector.
Key Entities Referenced
Ministry of Food Processing Industries: The Indian government ministry responsible for the development of the food processing sector.
Production Linked Incentive Scheme for Food Processing Industry: A Central Sector Scheme implemented by the Ministry of Food Processing Industries to support creation of global food manufacturing champions and support Indian brands of food products in the international market.
World Food India: A premier platform organized by the Ministry of Food Processing Industries to highlight investment opportunities and advancements in food processing.
Production Linked Incentive Scheme for Millet-based Products: A scheme to incentivize the use of millets in food products and promote value addition and sales.
Make in India: A Government of India initiative to promote manufacturing and attract investment to the Indian manufacturing sector.
NABARD: National Bank for Agriculture and Rural Development, an apex development finance institution in India.
Pradhan Mantri Kisan Sampada Yojana: A Central Sector Scheme implemented by the Ministry of Food Processing Industries to create modern infrastructure for the food processing industry.
PM Formalisation of Micro Food Processing Enterprises Scheme: A Centrally Sponsored Scheme for providing technical, financial and business support for setting up/upgradation of Micro Food Processing Enterprises.
GOVERNMENT OF INDIA
MINISTRY OF FOOD PROCESSING INDUSTRIES
LOK SABHA
UNSTARRED QUESTION NO. 1932
ANSWERED ON 31ST 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 theregistered 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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