Government Initiatives to Promote India’s Food Processing Industries
India’s food processing industry has seen a remarkable growth over the past 11 years, shaped by its strong farm base, growing demand, and supportive government policies. The country is set to become a global leader in this sector, with steady growth ahead. India’s strong agricultural base, especially its position asthe world’s second-largest producer of fruits and vegetables, has driven rapid transformation in food processing. The sector has become vital to the economy, contributing significantly to GDP, employment, and exports. Agricultural and processed food exports touched USD 49.4 billion in 2024–25, with processed food accounting for 20.4% of the share, up from 13.7% in 2014-15. Employment is also significant, with about 2.23 million workers in registered units and 4.68 million in the unregistered sector, according to official surveys.
The Government of India has been actively promoting the food processing sector through targeted schemes and reforms, recognizing its potential as a global leader in value-added agriculture. The number of registered food business operators has expanded from 25 lakh to 64 lakh, reflecting growing formalisation. Infrastructure has also strengthened with establishing 24 mega food parks, 22 agro-processing clusters and completing 289 cold chain projects and 305 processing and preservation units, creating significant additional capacity. Further, 10 projects under Operation Greens have enhanced value addition, while 225 R&D projects have yielded 20 patents and 52 commercialised technologies.
The MoFPIis implementing the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) with an outlay of ₹10,900 crore (2021–22 to 2026–27) to build global champions and boost Indian brands in international markets. Further, a Production Linked Incentive Scheme for Millet-based Products (PLISMBP) has been launched to encourage Ready-to-Eat (RTE) and Ready-to-Cook (RTC) millet products, promoting value addition and expanding millet consumption.
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