India’s Food Processing Sector Sees Significant Growth and Investment
The food processing sector in India has witnessed impressive growth over the past decade, with the Gross Value Added (GVA) climbing from Rs. 1.34 lakh crore in 2014-15 to an estimated Rs. 2.24 lakh crore in 2023-24. Accompanying this growth, the sector has attracted a notable Foreign Direct Investment (FDI) of USD 7.33 billion between 2014-15 and 2024-25, highlighting its increasing viability and importance in the Indian economy.
Export of processed food has also seen a substantial surge. The share of processed food exports in total agricultural exports rose from 13.7% in 2014-15 to an expected 20.4% by 2024-25. This uptrend is reflective of the sector’s robust performance, which has averaged an annual growth rate of 6.55% over the last nine years, surpassing the overall manufacturing sector’s growth rate of 6.06% during the same period.
Sector Contributions and Employment
The food processing industry stands as the largest employer within the registered manufacturing sector, accounting for 12.83% of employment as reported in the Annual Survey of Industries for 2023-24. This sector’s dynamic nature ensures job opportunities are available across various levels and specializations, contributing significantly to the national economy.
Government Initiatives and Support
To bolster the growth of the food processing sector, the Ministry of Food Processing Industries (MoFPI) has sanctioned various development initiatives. By the end of 2025, the Ministry approved two Mega Food Parks, two Agro Processing Clusters, and numerous Integrated Cold Chains and Food Processing Units under the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY). Additionally, 1,444 micro food processing enterprises were supported under the PM Formalization of Micro Food Processing Enterprises (PMFME) scheme, while six projects have been funded under the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) specifically in Rajasthan.
Empowering Local Enterprises
As of December 31, 2025, a total of 172,707 micro food processing enterprises have received subsidy approvals, along with support for 376,326 members of Self Help Groups, amounting to Rs. 1,282.99 crore in seed capital. The initiative has successfully identified 137 unique products for the One District One Product (ODOP) scheme across 726 districts to aid in the development of respective value chains. Furthermore, 76 incubation centers have been established with a total investment of Rs. 208.11 crore to nurture these value chains and promote entrepreneurship.
To sustain the upward trajectory of the food processing industry, the MoFPI incentivizes the establishment and expansion of food processing infrastructure through demand-driven schemes like PMKSY, PLISFPI, and PMFME. These initiatives not only enhance infrastructure but also provide a solid framework for ongoing growth in the sector.
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