Indian Economy News

Gross Value Addition (GVA) in the food processing sector increased at a Compounded Annual Growth Rate (CAGR) of 7.27%

The Gross Value Addition (GVA) in the food processing sector has increased at a Compounded Annual Growth Rate (CAGR) of 7.27%, from US$ 22,000 (Rs. 1.79 lakh) in 2016-17 to US$ 0.3 million (Rs. 2.37 crore) in 2020-21, according to Mr. Prahlad Singh Patel, Union Minister of State for Food Processing Industries and Jal Shakti of India.

The food processing sector contributes 12% of employment in the registered manufacturing sector. The Ministry of Food Processing Industries is implementing various schemes and policy initiatives, which thereby resulted in an increased contribution of the food processing industry to India’s GVA. The Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) is being implemented, which aims in creating modern post-harvest infrastructure, boost value addition, provide better returns to farmers, creation of employment opportunities, etc.

Additionally, the PM Formalization of Micro Food Processing Enterprises (PMFME) Scheme is being executed to provide financial, technical, and business support for setting up or upgradation of two lakh micro food processing enterprises across the country. A Production Linked Incentive Scheme (PLIS) is also being implemented to support the creation of global food manufacturing champions.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.