As of December 18, 2024, the Ministry of Finance reported that they permitted 1,646 food processing projects under PMKSY. Only for these projects, they have invested ₹31,830.23 crore. This is how they are able to increase processing capacities while generating approximately 1.34 million jobs.
More than that, the government launched the Production Linked Incentive Scheme for the Food Processing Industry (PLISFPI). Through this initiative, they are attracting investments totalling ₹8,910 crore from 133 companies.
Even after this much development, we can see 30% less FDI involvement in the sector in the fiscal year 2023-24. Processed food exports also face a 17% decrement within the same time. That is why the government is permitting 100% FDI through the automatic route, and GST is reduced on many food products. So, we can expect growth and attract more investors.
Specific segments are also being focused on, as we can see from the Finance Minister’s announcement of the Makhana Board in Bihar in the Union Budget 2025. There should be more such initiatives for other prominent markets for regional economic development.
Overall, these initiatives are crafted carefully by keeping India’s food sector in mind and we hope many effective schemes are yet to take place. This is a great approach to the nation’s economic growth and increasing livelihood.
