India 2018

284 India 2018
Contribution of Food Processing Sector
Over the years agricultural production in India has consistently recorded
higher output. India ranks number one in the world in the production of
milk, ghee, ginger, bananas, guavas, papayas and mangoes. Further, India
ranks second in the world in the production of rice, wheat and several other
vegetables and fruits. Abundant supply of raw materials, increase in demand
for food products and incentives offered by the Government has impacted
food processing sector positively. Annual growth rate of this sector during
2015-16 was 6.87 per cent as compared to around 0.76 per cent in agriculture
and 10.56 per cent in manufacturing at 2011-12 prices. During 2015-16, the
sector constituted as much as 8.71 and 10.04 per cent of GVA in manufacturing
and agriculture sector respectively at 2011-12 prices.
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.
Export of Processed Food Products
The value of processed food exports during 2016-17 was of the order of US
$ 31.04 Billion constituting 11.23 per cent of India's total exports (total
exports US $ 276 Billion). [Source: DGC and IS].
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 Programme
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 industries.
Mega food parks with common utility 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