Q. Examine the scope of the food processing industries in India. Elaborate the measures taken by the government in the food processing industries for generating employment opportunities.

Model Answer:

Food Processing Industries in India: Scope and Employment Generation

India’s food processing industry, recognized as a “sunrise sector,” bridges agriculture and manufacturing, contributing 32% to the country’s total food market while offering immense potential for employment generation and farmer income enhancement.

Scope of Food Processing Industries

India’s strong agricultural foundation provides unparalleled opportunities for food processing expansion. The country ranks first globally in milk, pulses, and mango production, and second in rice, wheat, fruits, and vegetables production.

Economic Significance and Growth Potential:
• The industry contributes approximately 32% of India’s food market and ranks fifth globally in production, consumption, and exports
• Growing at 8.3% annually, the sector is projected to reach USD 535 billion by 2025-26
• Despite abundant raw materials, only 10% of produce is processed compared to USA (65-70%) and China (40%), indicating vast untapped potential
• Post-harvest losses remain high at 15-20% for fruits and vegetables, necessitating enhanced processing infrastructure

Rising disposable incomes, urbanization, changing lifestyles, and the exponential growth of online food delivery are driving demand for processed foods. The sector’s export potential continues expanding with growing global demand for Indian cuisine.

Government Measures for Employment Generation

The government has launched comprehensive schemes targeting infrastructure development and formalization of the unorganized sector:

Key Initiatives:
• Pradhan Mantri Kisan SAMPADA Yojana – Created employment for 7.6 lakh people while supporting 53 lakh farmers through Mega Food Parks, cold chain infrastructure, and value addition facilities
• PMFME Scheme – Sanctioned 1.41 lakh loans supporting 3.3 lakh SHG members, focusing on micro-enterprises (like pickle units, bakeries)
• PLI Scheme – With ₹10,900 crore outlay, expected to generate 2.5 lakh jobs by 2026-27 while creating global champions
• Financial Support – Priority Sector Lending status and 100% FDI through automatic route facilitate investment and job creation

These measures address critical gaps in infrastructure, credit access, and skill development, particularly benefiting rural areas where most processing units operate.

Conclusion:
Food processing industry’s multiplier effect on employment, farmer incomes, and export earnings makes it crucial for India’s economic transformation.