Agro & Food Processing - #SectorUpdates
Food processing sector in India exhibits a growing trend and plays an essential role in developing linkage between farmers and domestic market. India’s food ecosystem offers huge opportunities for investments with stimulating growth. Ministry of Food Processing Industries (MoFPI) has encouraged investments across the value chain and thus output is expected to grow from 22, 830, 00 crore in 2021 – 22 to 43, 746, 82 crore by 2025 – 26 at a CAGR of 11%. Food processing sector contributes 12.8% to Indian GDP with a promising employment generating scenario in the sector both directly and indirectly. As per NSSO 73rd report, this sector employs 1.93 million workers directly and 5.1 million workers indirectly. As per market reports, the sector will generate 4.40 million additional employment opportunities by end of 2022. Indian food processing industry is primarily export oriented having the geographical advantage of connectivity to Europe. During 2021- 22, exports of Processed Food in India has reached Rs. 41,460.06 Crores. Government of India has come up with Pradhan Mantri Kisan Sampada Yojana (PMKSY) with an objective to encourage investments in irrigation, expand cultivable area, improve on-farm water use efficiency, enhance the adoption of precision-irrigation and thereby help the sector to achieve a sustainable growth path in the upcoming era.