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India's Processed Food Exports Surge to 20.4% Share, Attracts Billions in FDI

The share of processed foods in India's agri-food exports has risen significantly from 13.7% to 20.4% over the last decade. The sector's Gross Value Added has nearly doubled, reaching Rs 2.24 lakh crore, and it has attracted substantial FDI equity inflows. Government schemes like PMKSY, PMFME, and the Production Linked Incentive scheme are driving investment, capacity creation, and farmer benefits. The sector is a leading employment provider in organized manufacturing, with approved projects expected to generate hundreds of thousands of jobs.

Key Points: Processed Food Exports Hit 20.4% Share, GVA Doubles: Govt

  • Processed food export share up to 20.4%
  • GVA doubled to Rs 2.24 lakh crore
  • $7.33 billion FDI attracted
  • PMKSY & PLI schemes drive growth
  • Major employment generator in manufacturing
3 min read

Share of processed foods in agri-food exports reaches 20.4 pc: Govt

India's processed food export share jumps from 13.7% to 20.4%, GVA hits Rs 2.24 lakh crore, and sector attracts $7.33 billion FDI, creating massive employment.

"The food processing sector plays an important role in increasing farm income and creating off-farm jobs - Ministry of Food Processing Industries"

New Delhi, Jan 9

The share of processed food exports in agri-food exports increased substantially from 13.7 per cent in 2014-15 to 20.4 per cent in 2024-25, the government said on Friday, adding that the sector is one of the largest employment providers in the organised manufacturing field with 12.83 per cent employment in the total registered/organised sector.

The Gross Value Added (GVA) in the food processing sector has increased from Rs 1.34 lakh crore in 2014-15 to Rs 2.24 lakh crore in 2023-24 (as per first revised estimates).

The sector has attracted $7.33 billion FDI equity inflow during April 2014-March 2025, said Ministry of Food Processing Industries.

"The food processing sector plays an important role in increasing farm income and creating off-farm jobs, reducing post-harvest losses in agriculture and allied sector production through on- and off-farm investments in preservation and processing infrastructure," said the ministry

The Pradhan Mantri Kisan Sampada Yojana (PMKSY) was approved with an allocation of Rs 6,000 crore for the period 2016-20 (extended to 2020-21) for 14th Finance Commission (FC) cycle, and has been approved to be continued after restructuring during 15th FC Cycle with allocation of Rs 6,520 crore.

Since January 2025, 36 projects have been approved under various component schemes of PMKSY, and 94 projects have been completed/operationalised resulting in processing and preservation capacity of 28.48 Lakh MT, informed the ministry.

The approved projects, once operationalised, are expected to leverage investment of Rs 365.21 crore, benefiting about 1.4 lakh farmers and are expected to result in more than 0.09 lakh direct/indirect employment.

In all, 1,618 projects have been approved under various component schemes of PMKSY, since their respective dates of launch.

The centrally-sponsored scheme named Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme (PMFME) was launched in June 2020 to encourage 'Vocal for Local' in the sector in a total outlay of Rs 10,000 crore. The scheme has been extended up to FY 2025-26.

Since January 2025, a total of 56,543 loans have been sanctioned under the credit linked subsidy component of the PMFME scheme. An amount of Rs. 240.92 crore has been sanctioned as seed capital assistance to 63,108 Self Help Group (SHGs) members.

The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) was approved by Union Cabinet with an outlay of Rs 10,900 crore. The scheme is being implemented over a six-year period from 2021-22 to 2026-27.

A total of 170 proposals under different categories of PLISFPI are currently approved. Total investment to the tune of Rs 9,702 crore has so far been reported under the scheme, reportedly generating employment opportunities of 3.4 Lakh. Total incentives to the tune of Rs 2,162.553 crore has been disbursed under 161 eligible cases to date.

- IANS

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Reader Comments

R
Rohit P
Good numbers, but the real test is if this growth reaches small farmers in villages. The article mentions 1.4 lakh farmers benefiting from new projects - hope this is true on ground and not just on paper.
A
Aman W
Processing our own food before export is the way to go. We have been exporting raw materials for too long while other countries reap the profits. More investment in cold chains and packaging tech is needed next.
S
Sarah B
As someone working in the agri-tech space, these figures are encouraging. The FDI inflow of over $7 billion shows global confidence. The key is sustaining this momentum and ensuring quality standards for international markets.
K
Karthik V
Reducing post-harvest losses is the biggest win here. So much of our farmers' hard work gets wasted. If processing units near farms can prevent that, it's a double benefit - more income for farmers and more export for country.
N
Nisha Z
Hope the employment generated is good quality and stable. 12.83% in organised manufacturing is significant. But we must also watch that these processed foods for export don't mean less nutritious food for our own people at home.

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