Introduction
The Food processing Industry scenario in India is experiencing a unique metamorphosis; it has indeed turned into one of the potential growth engines of Indian economy, job creator and export booster. The Ministry of Food Processing Industries (MoFPI) has played a very active role in this increase through several projects and policies. As it stands, this blog pays a closer look to the food processing industry, Covering the measures that government has put in place, and the opportunities of the prospective businessman.
The Food Processing Industry: A Growth Story
Currently, the food processing industries have recorded tremendous progress over the last several years and stand as a key driver to India’s economical growth as shown below.
Key highlights include:
- Robust growth: The sector has increased by its average annual growth rate (AAGR) within the approximate equivalent of 5 percent. Marginally declined to 35 percent over the last eight years.
- Increased GVA: The GVA in the sector has increased from Re 1. Crore rupees in 2014-15 rose to Rs. 61 lakh crore in 2015-16 to Rs. 1. To Rs 92 lakh crore in 2022-23.
- Employment generation: The industry provides many job vacancies; employment has climbed from 17. from 73 lakh in the fiscal 2014-15 to only 20. 68 lakh in 2021-22.
- Export prowess: Exports of processed food have also posted a fairly large growth with a share of agri-food exports recorded at; 13. Their fresher pass rate increased from 7% in 2014-15 to 23. 4% in 2023-24.
Government Initiatives Driving Growth
They have also adopted a central role in the incubation of the food processing industries across the country.
Key initiatives include:
- Pradhan Mantri Kisan SAMPADA Yojana (PMKSY): Its Umbrella scheme is, however, meant to build new infrastructure, eliminate any wastage, and encourage exports. Under the PMKSY, Government has sanctioned 41 Mega Food Parks, 399 Cold Chain projects, 76 Agro-Processing clusters and 588 Food Processing units.
- PM Formalization of Micro food processing Enterprises (PMFME): The available facility is that it gives financial, technical and business assistance to micro food processing units. More than 92,549 units have been cleared for help through PMFME.
- Production Linked Incentive Scheme for Food Processing Industry (PLISFPI): In this scheme, it plans to develop champions in the food manufacturing at the global level and for Indian food companies on the global platform. The Ministry of trade has identified 172 companies that process food and have been cleared for the assistance.Prospects for Food Processing Businessmen
The advancement of the food processing business offers a broad and wide space to the business people. Key areas of focus include:Key areas of focus include: - Value-added products: The youth as the most active and innovative generation seeks value-added processed food products hence presenting great opportunities for investors.
- Organic and natural food: With the awareness levels raised among the customers towards health and hygiene, market for organic and natural food products are bound to open up.
- Export potential: On the same note, since the government of the country has embarked on export promotion as its flagship, the doors are open for the businesspersons to expand their businesses to the global market.
- Government support: Most of the schemes and programmes proffered by the MoFPI offer great support to the food processing business.
Food processing sector is growing rapidly in India because of the favourable government policies and growing consumption tendency. The sector can therefore be said to be holding great potential for satisfaction of demand by aspiring business persons willing to capitalize on the industry gains. Thus, government support and market research and analysis can also help the entrepreneurs to develop and grow the sector.