Elaborate the scope and significance of the food processing industry in India.

Sample Answer


Food processing is a sunrise sector accounting for 11% of GVA in agriculture and 10% of GVA in manufacturing. With total size of 2.24 lakh crores, it has registered average annual growth of 10% as compared to 3% in agriculture.


Scope for growth of Food processing

Demand SideSupply Side
Nuclear familiesOrganised retailRise in disposable incomesIncreasing urbanisationLargest producer of Food grains2nd largest producer of Fruits and vegetablesLargest livestock population 

The sector has huge significance as it provides synergy to agriculture and industry.

  • Promote agricultural diversification by increasing demand for raw materials Ex: Patanjali
  • Double Farmers’ income by establishing backward linkages Ex: Suguna Foods.
  • Reduce Post-harvest losses (Rs 92,000 crores) through cold chain infrastructure.
  • Boost Agricultural exports by increasing share of processed food in export basket (16%).
  • Address nutritional insecurity through Food Fortification.
  • Benefit consumers through better quality taste, more choices etc. Ex: Zespri
  • Control food inflation by increasing shelf-life.
  • Promote inclusive growth through secondary agriculture and job creation.


To realise full potential of this sector, challenges such as dominance of informal sector, poor infrastructure, lack of skilled workforce, supply chain constraints need to be addressed through PM Kisan Sampada, PMFME, PLI.

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