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.

Scope of Food Processing Industries in India

India's food processing sector is experiencing rapid transformation, driven by its robust agricultural base, increasing domestic demand, and supportive governmental policies. The sector holds significant scope across multiple dimensions:

• Economic Contribution: The FPI contributed around 8.80% and 8.39% of Gross Value Added (GVA) in Manufacturing and Agriculture respectively in 2024. It accounts for 32% of the total food market and 13% of India's total exports. The sector is projected to reach US$ 1,100 billion by FY35 and US$ 2,150 billion by FY47, underscoring its long-term growth potential.
• Agricultural Linkages: India is the world's largest producer of milk, pulses, and spices, and among the leading producers of fruits, vegetables, and cereals. This vast and diverse raw material base provides a strong foundation for the FPI to grow by minimizing post-harvest losses and enhancing value addition. Currently, only about 10% of agricultural output is processed, indicating significant untapped potential.
• Reducing Food Waste: Post-harvest losses, particularly in fruits and vegetables, are estimated at 15-20%. Food processing significantly reduces this wastage by preserving perishable goods and extending their shelf life, thereby improving food security and farmer remuneration.
• Domestic Demand Drivers: Rapid urbanization, rising disposable incomes, changing lifestyles, and an increasing number of working women are boosting demand for packaged, ready-to-eat (RTE), and ready-to-cook (RTC) foods. This strong domestic market acts as a major growth engine for the industry.
• Export Potential: The share of processed food exports in agri-food exports increased substantially from 13.7% in 2014-15 to 23.4% in 2023-24. India's strategic geographical location offers competitive advantages for exports to the Middle East, Africa, and ASEAN markets.
• Nutrition and Health: The FPI can address nutritional deficiencies through fortification of staple foods like rice, milk, and edible oils, contributing to better public health outcomes.
• Rural Development and Employment: By creating demand for agricultural produce and establishing processing units in rural areas, the FPI can diversify rural economies, reduce distress migration, and generate non-farm employment.

Government Measures for Employment Generation in Food Processing Industries

The Government of India has undertaken several comprehensive measures to bolster the food processing sector, specifically targeting employment generation:

1. Flagship Schemes

• Pradhan Mantri Kisan Sampada Yojana (PMKSY): Launched in 2017, this umbrella scheme aims to create modern infrastructure for food processing. It includes sub-schemes like Mega Food Parks, Cold Chain and Value Addition Infrastructure, and Creation/Expansion of Food Processing & Preservation Capacities. As of January 2024, 143 new projects were approved, generating over 57,000 jobs. Overall, 1,646 projects under PMKSY have created over 7.46 lakh direct and indirect employment opportunities.
• Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme: Launched in 2020 under Aatmanirbhar Bharat Abhiyaan, this centrally sponsored scheme supports micro food processing units. It provides credit-linked subsidies (35% of eligible project cost, up to ₹10 lakh per unit) and seed capital (₹40,000 per SHG member). The scheme follows a 'One District One Product' (ODOP) approach, fostering local entrepreneurship and employment. Since January 2024, 46,643 loans have been sanctioned, and over 1.09 lakh beneficiaries have undergone training since 2020-21.
• Production Linked Incentive (PLI) Scheme for Food Processing Industry: Approved with an outlay of ₹10,900 crore for 2021-22 to 2026-27, this scheme incentivizes manufacturing of specific food product segments (e.g., RTE/RTC foods, millet-based products) and promotes Indian brands globally. It is expected to create employment for nearly 2.5 lakh persons by 2026-27. As of 2024, it has generated 2.89 lakh jobs.

2. Skill Development and Capacity Building

• Food Industry Capacity and Skill Initiative (FICSI): This Sector Skill Council, under the Ministry of Skill Development and Entrepreneurship, has approved over 60 job roles relevant to the FPI. It provides structured training and capacity building, equipping workers and entrepreneurs with expertise in traditional and cutting-edge technologies. FICSI and related efforts have certified and trained over 2.72 lakh candidates in food-processing roles since 2015-16, including 2.60 lakh under Pradhan Mantri Kaushal Vikas Yojana (PMKVY).
• National Institutes of Food Technology Entrepreneurship and Management (NIFTEMs): Located at Thanjavur (Tamil Nadu) and Kundli (Haryana), these institutions offer degree/diploma courses, entrepreneurship development programs (EDP), and short-term training. Between 2018-19 and 2024-25, NIFTEMs have trained a significant number of individuals, promoting skilled manpower and entrepreneurship.

3. Infrastructure Development and Investment Promotion

• Mega Food Parks and Agro-Processing Clusters: These provide state-of-the-art processing facilities and support infrastructure, creating a conducive environment for food processing units and generating both direct and indirect employment. 41 Mega Food Parks and 71 Agro-Processing Clusters have been approved.
• Investment Promotion: Initiatives like 'Make in India' and a policy allowing 100% FDI in food processing, coupled with fiscal incentives, attract domestic and foreign investment, leading to the establishment of new units and expansion of existing ones, thus creating jobs. The sector attracted USD 6.793 billion FDI equity inflow during April 2014-March 2024.