Viksit Bharat by 2047: Role of Food Processing Sector

The food processing industry in India is at a nascent stage, accounting for less than 10% of total food produced in India. Studies conducted on the level of food processing in India have indicated that it is 4.5% for fruits, 2.7% for vegetables, 21.1% for milk, 34.2% for meat and 15.4% for fish. From 2015 to 2022, the food processing sector has grown substantially, averaging an annual growth rate of around 7.3%, compared to approximately 4.87% in the agriculture and allied sectors, at 2011–12 prices. It has also emerged as a pivotal segment of the Indian economy, contributing significantly to GDP, employment, and investment. In 2020–21, the sector constituted 10.54% of gross value added (GVA) in manufacturing and 11.57% of GVA in the agriculture sector, both at 2011–12 prices. India's agricultural and processed food exports have gone up to more than USD 50 billion in 2022-23. Exports of processed food accounted for 22.6% of the overall agri-food exports.

The Vision 2047 aims to utilise India's food processing sector to enhance income opportunities for the rural population, facilitate job creation, minimise food wastage, improve the availability of nutritious foods by enhancing the processing of fruits and vegetables, and augment the proportion of value-added products in India's export portfolio.

Key highlights of the report

• Significant investments are needed in rural infrastructure such as grading and packing centres, storage facilities, transportation, and testing laboratories.
• Increasing agricultural output without investing in processing facilities can harm farmers’ earnings and cause rural distress.
• Developing strong supply chains that connect farmers to processing and marketing is crucial.
• There is a need to strengthen primary processing at the farm level, including sorting/grading, packaging, drying, etc., while focusing on improved levels of value-addition.
• An integrated cold chain can be an industry driver that can transform India’s rural economy.

Viksit Bharat by 2047

The food processing industry in India is in its nascent stage and can contribute significantly to the vision of Viksit Bharat by 2047.

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