Food Processing Sector in India - Ensuring Inclusive Growth and Global Integration
June 24, 2025

Context:

  • This article highlights the transformative impact of India’s food processing sector over the past 11 years.
  • It underscores key government initiatives like PMFME, PMKSY, and the PLI scheme, showing how they have empowered micro-entrepreneurs, enhanced agricultural value chains, and positioned India as a global food processing hub.

Emergence of a Grassroots Food Revolution:

  • Makhana (foxnut) to the world - The Madhubani success story:
    • Gyanish Kumar Mishra from Bihar developed a flavoured makhana brand that is now exported to the USA and Canada.
    • Supported by the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme, this demonstrates how traditional Indian crops are gaining global market access.
  • Nationwide transformation:
    • Micro-entrepreneurs from Kashmir to the Andaman Islands are formalising operations and accessing new markets.
    • It reflects a broader structural shift towards aligning rural capacities with national economic growth.

Governmental Push - Policy, Institutional and Financial Support:

  • Ease of Doing Business (EoDB) and reform trajectory:
    • Over 11 years, reforms have created an enabling environment for business and industrial autonomy.
    • Food processing is now a critical pillar of agri-industrial integration and inclusive development.
  • Key flagship schemes driving growth:
    • Pradhan Mantri Kisan SAMPADA Yojana (PMKSY):
      • Under this, over 250 lakh metric tonnes of annual processing and preservation capacity has been created, attracting over Rs 22,000 crore private investment.
      • This has directly benefited over 53 lakh farmers and more than 7.6 lakh employment opportunities have been created.
    • PMFME:
      • It was launched under the Atmanirbhar Bharat Abhiyan with an outlay of Rs 10,000 crore to empower unorganised micro food enterprises through formalisation, capacity building, and access to credit.
      • Over 1.41 lakh loans (~Rs 11,205 crore) have been sanctioned to micro-enterprises and seed capital has been extended to support more than 3.3 lakh members of self-help groups (SHGs).
    • Production Linked Incentive (PLI) scheme: With committed investments of Rs 8,900 crore, the scheme has led to the creation of over 3.3 lakh jobs and added more than 67 lakh metric tonnes of processing capacity.

Strengthening Infrastructure and Quality Control - Union Budget 2024–25 Announcements:

  • Establishment of 50 multi-product irradiation units to reduce post-harvest losses and enhance shelf life.
  • Establishment of 100 NABL-accredited food testing laboratories to strengthen quality assurance across the value chain.
  • Establishment of a National Makhana Board, aimed at boosting value addition, branding, and global positioning of this unique superfood from India.

Innovation, Research, and Talent Development:

  • NIFTEMs - Evolving institutional and innovation ecosystem:
    • National Institute of Food Technology Entrepreneurship and Management (NIFTEM)-Kundli and NIFTEM-Thanjavur are fostering innovation and research.
    • A third NIFTEM is coming up in Bihar to harness the talent pool of eastern India.
  • Food-tech startups: Over 5,000 startups working on plant-based products, AI-enabled traceability, sustainable packaging, functional foods, etc.

Global Engagement and Recognition:

  • India’s growing leadership in the global food economy finds powerful expression through World Food India - the Ministry of Food Processing Industries’ flagship international platform for investment, innovation, and collaboration.
  • Designed to showcase India’s strengths across the food processing value chain, the event has evolved into a trusted forum for global stakeholders to engage with India’s agri-food ecosystem.

Local Stories, National Impact - Food processing a Force for Grassroots Transformation:

  • For example, a tribal kitchen in Bastar (Chhattisgarh), supported under the PMFME scheme, has transformed into a thriving enterprise.
  • It has reimagined the use of Mahua flowers into value-added products like chocolates, energy bars, and tea.
  • The firm has not only preserved indigenous heritage but carried it to national shelves and international markets.

Conclusion:

  • India’s food processing revolution stands as a model of inclusive development, where rural entrepreneurship, policy support, and innovation coalesce to drive global competitiveness.
  • It moves with renewed resolve towards a future where every global shelf proudly holds a "Made in India" product — a symbol of collective prosperity and self-reliance.

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