How has the share of processed foods in agri-food exports changed?
Synopsis
In a significant development, the share of processed food exports in India's agri-food exports has jumped to 20.4% in 2024-25. This shift not only enhances the sector's economic viability but also plays a crucial role in job creation and farm income. Discover the implications of these changes and how they impact farmers and the economy.
Key Takeaways
Processed food exports have increased to 20.4% .
The sector employs 12.83% of the organized workforce.
The GVA in the sector is now Rs 2.24 lakh crore .
FDI inflow of $7.33 billion has been recorded.
PMKSY continues to support growth with a budget of Rs 6,520 crore .
New Delhi, Jan 9 (NationPress) The proportion of processed food exports within total agriculture and food exports has seen a significant rise from 13.7 percent in 2014-15 to 20.4 percent in 2024-25, according to government reports released on Friday. This sector stands out as one of the foremost providers of employment within the organized manufacturing industry, accounting for 12.83 percent of jobs in the entire registered/organized sector.
The Gross Value Added (GVA) in the food processing industry has surged from Rs 1.34 lakh crore in 2014-15 to Rs 2.24 lakh crore in 2023-24, based on the initial revised estimates.
The sector has successfully attracted $7.33 billion in Foreign Direct Investment (FDI) equity inflow from April 2014 to March 2025, as reported by the Ministry of Food Processing Industries.
According to the ministry, “The food processing sector is essential for enhancing farm income and generating off-farm employment, while also minimizing post-harvest losses in agriculture and related sectors through investments in preservation and processing infrastructure.”
The Pradhan Mantri Kisan Sampada Yojana (PMKSY) was sanctioned with a budget of Rs 6,000 crore for the period 2016-20 (later extended to 2020-21). The scheme has been approved for continuation with a revised budget of Rs 6,520 crore during the 15th Finance Commission cycle.
As of January 2025, 36 projects have been authorized under various PMKSY schemes, with 94 projects completed or operationalized, resulting in a processing and preservation capacity of 28.48 Lakh MT, the ministry reported.
Once operational, these approved projects are expected to mobilize investments of Rs 365.21 crore, benefiting approximately 1.4 lakh farmers and generating over 0.09 lakh direct/indirect jobs.
In total, 1,618 projects have been sanctioned under various PMKSY schemes since their inception.
The centrally-sponsored scheme known as the Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme (PMFME) was initiated in June 2020 to promote 'Vocal for Local' within the sector, with a total budget of Rs 10,000 crore. This scheme has been extended up to FY 2025-26.
As of January 2025, 56,543 loans have been approved under the credit-linked subsidy component of the PMFME scheme, with Rs 240.92 crore allocated as seed capital assistance to 63,108 Self Help Group (SHG) members.
The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) was authorized by the Union Cabinet, with a budget of Rs 10,900 crore. This scheme is set to be implemented over a six-year timeline from 2021-22 to 2026-27.
Currently, 170 proposals across various categories of PLISFPI have been approved, with a total investment reported at Rs 9,702 crore, reportedly creating 3.4 Lakh jobs. To date, total incentives amounting to Rs 2,162.553 crore have been granted under 161 eligible cases.
Point of View
It's evident that the growth in processed food exports is a positive trend for India's agricultural economy. As the sector adapts to changing market demands, it not only boosts employment but also enhances the livelihoods of countless farmers. This development underscores the importance of continued investment and support in food processing to sustain growth and innovation.
NationPress
12 May 2026
Frequently Asked Questions
What is the current share of processed food exports in agri-food exports?
The share of processed food exports has risen to 20.4% in 2024-25, up from 13.7% in 2014-15.
How much FDI has the food processing sector attracted?
The sector has attracted $7.33 billion in FDI equity inflow from April 2014 to March 2025.
What is the Pradhan Mantri Kisan Sampada Yojana?
This scheme was launched to enhance food processing and has a budget allocation of Rs 6,520 crore for the 15th Finance Commission cycle.
How many projects have been approved under PMKSY?
A total of 1,618 projects have been approved under various schemes of PMKSY since their launch.
What is the significance of the Production Linked Incentive Scheme?
This scheme aims to boost the food processing industry with an investment of Rs 10,900 crore over six years.
