The food processing sector’s gross value added (GVA) has risen from Rs. 1.34 lakh crore in 2014–15 to Rs. 2.24 lakh crore in 2023–24, based on the first revised estimates. Between 2014–15 and 2024–25, the sector attracted foreign direct investment (FDI) worth US$ 7.33 billion, minister of state for food processing industries, Ravneet Singh, said in a written reply in the Rajya Sabha.
GVA measures the value of goods and services produced in an industry, sector, or region, calculated as total output minus intermediate consumption (input costs). It indicates the net wealth created, acting as a key metric for sectoral economic performance and a direct component of GDP.
Over the same period, the share of processed food exports in total agricultural exports climbed markedly, increasing from 13.7% in 2014–15 to 20.4% in 2024–25. During the last nine years, the food processing sector recorded an average annual growth rate of 6.55%, outpacing the overall manufacturing sector, which grew at 6.06%, the minister said.
According to the Annual Survey of Industries 2023–24, it is the largest employer within the registered manufacturing sector, accounting for 12.83% of total employment in the registered/organized segment.
As of 31 December 2025, the ministry of food processing industries (MoFPI) has approved, in Rajasthan, two mega food parks, two agro processing clusters, 14 integrated cold chain projects, 24 food processing units, and six projects for the creation of backward and forward linkages under the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY).
In addition, 1,444 micro food processing enterprises have been sanctioned under the centrally sponsored PM Formalization of Micro Food Processing Enterprises (PMFME) scheme, along with 6 projects approved under the Production Linked Incentive Scheme for the Food Processing Industry (PLISFPI).
As on 31 December 2025, subsidies have been approved for 1,72,707 micro food processing enterprises across the country, and over 3.76 lakh self-gelp Group members have been supported with seed capital amounting to Rs 1,282.99 crore in both rural and urban areas under the PMFME scheme.
A total of 137 unique products have been identified and approved under the One District One Product (ODOP) initiative across 726 districts for the development of corresponding value chains. To support these efforts, 76 incubation centres, with a combined outlay of Rs 208.11 crore, have been approved to nurture entrepreneurs and strengthen value chains.
To promote the overall development of the food processing sector, MoFPI has been encouraging the establishment and expansion of food processing infrastructure through two central sector schemes: the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) and the Production Linked Incentive Scheme for the Food Processing Industry (PLISFPI).
In parallel, the centrally sponsored PM Formalization of Micro Food Processing Enterprises (PMFME) scheme is also being implemented by the Ministry. All three schemes are demand-driven and are operational across the country.
The mega food park and the creation of infrastructure for agro-processing clusters (APC) components under PMKSY are designed to foster the development of food processing clusters. As of 31 December 2025, MoFPI has approved twp mega food parks and two APCs under PMKSY in Rajasthan. The mega food park scheme, however, has been discontinued by the Ministry with effect from 2021.
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Naresh Khanna – 10 February 2025
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