Rising Contribution to the Economy
According to official data, the Gross Value Added (GVA) of the food processing sector increased significantly from ₹1.34 lakh crore in 2014–15 to ₹2.24 lakh crore in 2023–24, based on the first revised estimates. This growth reflects the sector’s strengthening role in India’s manufacturing ecosystem and rural economy.
Over the same period, the sector recorded an average annual growth rate of 6.55 percent, higher than the overall manufacturing sector’s growth of 6.06 percent, underlining its resilience and long-term potential.
FDI and Export Performance
The food processing industry has also emerged as an attractive destination for foreign investors. From 2014–15 to 2024–25, the sector attracted Foreign Direct Investment (FDI) worth USD 7.33 billion, reflecting growing global confidence in India’s food processing capabilities.
Processed food exports have gained a larger share in India’s agri-exports, rising from 13.7 percent in 2014–15 to 20.4 percent in 2024–25. Improved infrastructure, quality standards and value addition have contributed to this export growth.
Employment Generation
The food processing sector remains the largest employer within the registered manufacturing segment. As per the Annual Survey of Industries 2023–24, it accounts for 12.83 percent of employment in the total registered or organized manufacturing sector.
This employment intensity makes the sector a critical pillar for inclusive growth, particularly in rural and semi-urban regions.
Infrastructure Development Under PMKSY
MoFPI has been supporting infrastructure development through the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY). As of December 31, 2025, approvals across the country include Mega Food Parks, Agro Processing Clusters, Integrated Cold Chains, food processing units, and projects for backward and forward linkages.
In Rajasthan alone, approvals include two Mega Food Parks, two Agro Processing Clusters, fourteen Integrated Cold Chain projects, twenty-four food processing units, and six linkage projects under PMKSY. The Mega Food Park scheme, however, has been discontinued from April 1, 2021.
Support for Micro Enterprises Through PMFME
The centrally sponsored PM Formalization of Micro Food Processing Enterprises (PMFME) scheme has played a key role in empowering small entrepreneurs. Nationwide, over 1.72 lakh micro food processing enterprises have been approved for subsidy support.
Additionally, more than 3.76 lakh Self Help Group members have received seed capital amounting to ₹1,282.99 crore across rural and urban areas, strengthening grassroots entrepreneurship.
ODOP and Incubation Support
Under the One District One Product (ODOP) initiative, 137 unique products across 726 districts have been identified for focused value chain development. To support innovation and entrepreneurship, 76 incubation centres with a total outlay of ₹208.11 crore have been approved.
These efforts aim to create sustainable local ecosystems, enhance product branding, and improve market access.
PLI Scheme and Future Outlook
Complementing infrastructure and micro enterprise support, the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) incentivizes capacity expansion and technological upgrades. Six projects under this scheme have been approved in Rajasthan as of December 2025.
Together, PMKSY, PMFME and PLISFPI form a comprehensive policy framework to modernize India’s food processing sector, boost farmer incomes, create jobs and enhance export competitiveness.
