for food products and incentives offered by the Government has impacted food processing sector
Employment in Food Processing Sector
Food processing industry is one of the major employment intensive segments constituting
12.77 per cent of employment generated in all registered factory sector in 2014-15. According to
the Annual Survey of Industries (ASI) data for 2014-15, the total number of persons engaged in
registered food processing sector was 17.73 lakhs. Unregistered food processing sector supports
employment to 47.9 lakh workers as per the NSSO 67th Round, 2010-11.
Fixed Capital in Food Processing Industries
In terms of investment in fixed capital, registered food processing sector is growing
annually at an average of 15.60 per cent during six years ending 2014-15. As per the latest ASI
2014-15, the Fixed Capital in FP Industry stood at ₹ 1.92 lakh crore.
FDI in Food Processing Sector
Cent per cent FDI is permitted under the automatic route in food processing industries-
manufacturing sector. FDI is allowed through approval route for trading, including through e-
commerce in respect of food products manufactured and/or produced in India.
Food Processing and Make in India
Food processing sector has been identified as one of the priority sector under ‘Make in
India’. With a view to attract investment to this sector, Ministry of Food Processing Industries
has been implementing schemes for development of infrastructure for promoting food processing
Mega food parks with common utilities like road, electricity, water supply, sewage facility and
common processing facility like pulping, packaging, cold storage, dry storage and logistics are
being promoted in areas with strong agricultural resource base. These parks provide fully
developed plots and factory sheds to entrepreneurs on long term lease basis where they can set
up food processing units in “plug and play model”.
Ministry has been disseminating information to potential investors to attract investment to
the sector through a dedicated “Investors Portal”. The Ministry is also collaborating with Invest
India to help the investors in terms of locating joint venture partners, extending hand holding
services and expedite regulatory approvals. Ministry is also organizing Road Shows to attract
FDI including FDI in retail and promote Make in India Initiative.
National Mission on Food Processing
The Ministry launched a Centrally Sponsored Scheme—National Mission on Food
Processing (NMFP) during 12th Plan in 2012. Five ongoing Central Sector Schemes of 11th Plan
and four new schemes were merged in the Mission. The CSS-NMFP was implemented through
states/UTs. However, the CSS-NMFP was de-linked from the central support in 2015 pursuant to
the recommendations of the 14th Finance Commission. Consequently, all nine schemes of the
Mission stand discontinued.
Government of India approved a new Central Sector Scheme - Kisan Sampada Yojana -
(Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters) in 2017