Know the contribution of food processing industries in India’s GDP

Know the contribution of food processing industries in India’s GDP
During the last five years ending 2019-20, Gross Value Added (GVA) in Food Processing Industries (FPI) sector has been growing at an Average Annual Growth Rate (AAGR) of around 11.18 per cent

During the last five years ending 2019-20, Gross Value Added (GVA) in Food Processing Industries (FPI) sector has been growing at an Average Annual Growth Rate (AAGR) of around 11.18 per cent.

The GVA (at constant prices 2011-12) in the food processing sector for the last five years are as under: (Rs. in  lakh crore)

2015-16 2016-17 2017-18 2018-19 2019-20
GVA-FPI 1.61 1.79 1.93 2.32 2.24

Source: National Accounts Division, Central Statistics Office

Ministry of Statistics and Programme Implementation (MoSPI) publishes data for the registered manufacturing sector including food processing. As per the latest Annual Survey of Industries (ASI) 2018-19, there were 40,579 food processing units in the registered sector. The ASI data do not give segregated data for big, medium, small, tiny units or details of multi-national corporations (MNCs).

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The MoSPI, through a national survey, collected data for unincorporated (unregistered) enterprises for the year 2015-16. As per this latest National Sample Survey (NSS 73rd, Round 2015-16), there were 24.59 lakh food processing enterprises in the unregistered segment out of which 93.6 per cent were in the micro category, 5.7 per cent in the small category and the remaining 0.7 per cent in the medium category.

The Ministry of Food Processing Industries is implementing a Central sector scheme – Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) for the overall development of the food processing sector including increasing the processing capacity, reducing wastage of agricultural produce, creating off-farm employment, ensuring better returns to farmers among other components. Major component schemes under PMKSY include Mega Food Park, Agro-Processing Clusters, Integrated Cold Chain, Creation/Expansion of Food Processing and Preservation Capacities (CEFPPC) and Backward & Forward Linkages. Similarly, for upgrading/formalising unorganised micro sector units, the PM Formalization of Micro Food Processing Enterprises (PM-FME) scheme is being implemented since June 2020. A Production Linked Incentive (PLI) scheme has also been rolled out for creating global food champions.

This information was given by Minister of State for Food Processing Industries, Prahlad Singh Patel in a written reply in Lok Sabha today

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