The food processing sector plays a critical role in enhancing farm incomes, creating off-farm employment, and reducing post-harvest losses through investments in preservation and processing infrastructure. During 2025, the Ministry of Food Processing Industries undertook several initiatives to strengthen the sector, resulting in significant progress across exports, employment, investment, and infrastructure creation.
Key Highlights of 2025
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The share of processed food exports in India’s agri-food exports rose from 13.7% in 2014–15 to 20.4% in 2024–25.
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The food processing sector accounted for 12.83% of employment in the registered manufacturing sector, as per the Annual Survey of Industries (ASI) 2023–24.
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Since January 2025, over 56,500 loans were sanctioned under the credit-linked subsidy component of the PMFME scheme.
Increased Budgetary Support
For FY 2026–27, the Government of India allocated ₹4,064 crore to the Ministry, marking an increase of nearly 14% over the Revised Estimate of ₹3,571.57 crore for FY 2025–26. This enhanced allocation reflects sustained focus on strengthening food processing infrastructure and value addition.
Sectoral Growth and Investment
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Gross Value Added (GVA) in the food processing sector increased from ₹1.34 lakh crore in 2014–15 to ₹2.24 lakh crore in 2023–24 (First Revised Estimates).
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The sector attracted USD 7.33 billion in FDI equity inflows between April 2014 and March 2025.
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Employment generation and export growth continued to position food processing among the most significant segments of organized manufacturing.
Achievements under Major Schemes
Pradhan Mantri Kisan Sampada Yojana (PMKSY)
PMKSY, with an approved outlay of ₹6,520 crore for the 15th Finance Commission cycle, continued to drive infrastructure development across the food processing value chain.
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Since January 2025, 36 projects were approved and 94 projects became operational, creating processing and preservation capacity of 28.48 lakh MT.
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Overall, 1,618 projects have been approved under PMKSY, of which 1,185 are operational, resulting in a capacity of 270.51 lakh MT.
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These projects are expected to benefit nearly 51 lakh farmers and generate over 7.22 lakh direct and indirect employment opportunities.
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Evaluation studies indicate waste reduction of up to 70% in fisheries and 85% in dairy products under completed cold chain projects.
The Union Cabinet approved an additional outlay of ₹1,920 crore in July 2025, including support for 50 multi-product food irradiation units and 100 NABL-accredited food testing laboratories.
Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme
Launched under the Atmanirbhar Bharat initiative, PMFME continued to promote micro food enterprises through the One District One Product (ODOP) approach.
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Since January 2025, over 56,500 loans were sanctioned, and ₹240.92 crore was released as seed capital assistance to more than 63,000 SHG members.
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Since inception, 1.72 lakh loans have been sanctioned and ₹1,282.98 crore released as seed capital to 3.76 lakh SHG members.
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A total of 76 incubation centres have been approved, with 23 already operational, supporting product development and enterprise growth.
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Marketing and branding support was extended through 27 approved proposals at national and state levels.
Production Linked Incentive Scheme for Food Processing Industries (PLISFPI)
The PLISFPI scheme, with an outlay of ₹10,900 crore, continued to support the creation of globally competitive food manufacturing champions.
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A total of 170 proposals have been approved across key segments such as ready-to-eat foods, processed fruits and vegetables, marine products, and innovative SME products.
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Investments worth ₹9,702 crore have been reported, generating employment for approximately 3.4 lakh people.
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Incentives amounting to ₹2,162.55 crore have been disbursed under eligible cases.
World Food India 2025
The Ministry successfully organized World Food India 2025 from 25–28 September 2025 at Bharat Mandapam, New Delhi, positioning India as a global food processing investment destination.
The event was inaugurated by Prime Minister Narendra Modi and witnessed participation from global leaders, ministers, industry CEOs, investors, and policymakers.
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Over 1,700 exhibitors, 95,000 visitors, and participants from 115 countries attended the four-day event.
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MoUs worth more than ₹1.02 lakh crore were signed, representing one of the largest investment commitments in the sector.
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The event featured exhibitions, CEO roundtables, technical conferences, buyer-seller meets, and parallel events including the Global Food Regulators Summit 2025.
Under PMFME, ₹778 crore in credit-linked subsidies were released to 26,000 beneficiaries during the event. PMFME products, ODOP mapping, success stories, and beneficiary stalls were prominently showcased, providing direct market exposure to micro entrepreneurs.