The food processing sector plays a vital role in transforming India's agricultural landscape. It is essential for enhancing the value of agricultural produce, converting raw materials into consumer-ready products for both domestic and international markets. This sector not only increases the shelf life of products but also reduces wastage and provides better financial returns for farmers. Moreover, it creates numerous employment opportunities, especially in rural areas, by linking agricultural activities with the broader economy.
The Government of India has launched several initiatives to bolster the food processing industry. Key schemes include:
The food processing sector has consistently contributed to India's Gross Domestic Product (GDP). From 2014-15 to 2020-21, its contribution to Gross Value Added (GVA) escalated from ₹1.34 lakh crore to ₹2.37 lakh crore, reflecting an annual growth rate of nearly 10%. This sector is anticipated to further accelerate economic growth by boosting agricultural exports and decreasing reliance on raw material exports.
Food processing significantly enhances farmers' income and profitability. By converting raw agricultural goods into marketable products, such as packaged foods, the sector creates value-added items that command higher prices. It also diminishes wastage and prolongs the shelf life of perishable products, ensuring that farmers receive better returns.
India is a key exporter of various processed food items, including spices, marine products, and ready-to-eat foods. In 2020, spice exports were valued at USD 3.65 billion. The rising global demand for organic and health-centric foods has further elevated India's share in processed food exports, contributing to foreign exchange earnings and overall economic advancement.
The Indian government has established policies permitting 100% FDI under the automatic route for food product manufacturing and retail trading. This has attracted investments of USD 3.54 billion in the sector between 2016 and 2021, bolstering technology, infrastructure, and expertise within India's food processing industry.
As global sustainability concerns rise, the food processing sector in India is adopting practices that reduce waste and enhance resource efficiency. The industry is increasingly focusing on sustainable packaging and plant-based products, striving to minimize its environmental impact. Government initiatives aimed at waste utilization and promoting plant-based proteins align with the vision for long-term sustainability in food production.
The food processing sector generates millions of jobs, particularly in rural regions. It is estimated to create off-farm employment opportunities through the processing of raw agricultural products, ensuring steady income for those involved. The sector’s growth also fosters the establishment of micro-enterprises, supported by initiatives like PMFME, thereby contributing to the employment landscape.
As India aspires to become a global leader in food production by 2047, the food processing sector is expected to be pivotal in reaching this goal. With expanding markets, rising demand for processed foods, and government support, robust growth is projected. Initiatives such as the World Food India Summit will further enhance India's position in the global food processing arena, making it a significant player in the international food supply chain.
Q1. What is the importance of the food processing sector in India?
Answer: The food processing sector is vital for adding value to agricultural products, increasing shelf life, reducing wastage, and generating employment, particularly in rural areas. It connects agriculture with global markets, enhancing farmers' income.
Q2. Which government schemes support the food processing industry in India?
Answer: Key government schemes include PMKSY, which focuses on modern infrastructure, PMFME for micro enterprises, and PLIS to encourage large-scale food processing, boosting growth and reducing wastage.
Q3. How does food processing contribute to India’s GDP?
Answer: The food processing sector's contribution to GDP has grown significantly, from ₹1.34 lakh crore to ₹2.37 lakh crore between 2014-15 and 2020-21, reflecting its critical role in economic development.
Q4. How is sustainability integrated into food processing in India?
Answer: The sector is adopting sustainable practices, minimizing waste, improving resource efficiency, and promoting renewable energy use, with government initiatives focusing on waste utilization and plant-based products.
Q5. What is the outlook for the food processing sector by 2047?
Answer: The sector is expected to play a key role in India's ambition to lead in food production by 2047, supported by expanding markets and government initiatives to enhance its global presence.
Question 1: What is a significant government initiative supporting food processing in India?
A) PMKSY
B) Digital India
C) Make in India
D) Skill India
Correct Answer: A
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