Arthamimansa – Research Journal

Emerging Potential of Food Processing Sector in India

Arthamimansa
Research Journal
Publication Type Journal Article
Publication Year 2025
Author(s) Dr. Digvijay R. Patil , Prof. M. S. Deshmukh , Amanuel A. Gebre
Journal Name Arthamimansa Research Journal
Volume, Issue 17 , 1
Article Type Research Paper
Keywords: Food Processing; Growth; Foreign Direct Investment; Gross Value Added; Industries

Abstract

This study explores the evolution of India's food processing sector from traditional methods to modern technology, emphasizing its global significance in food security and sustainability. It outlines primary and secondary food processing types and highlights the sector’s benefits, including reduced waste, employment generation, and increased export revenue. Food products dominate the industrial landscape, comprising 15.89% of all factories and 16.74% of operational ones. Of 246,504 total factories in India, 198,628 are active, employing over 16.6 million people, utilizing ₹364,135 crores in fixed capital, and generating ₹898,330 crores in output. In 2019–20, the sector employed 20.32 lakh people in registered units (12.22% of industry employment) and 51.11 lakh in 2015–16 (14.18%). India’s food exports rose from $34.42 billion in 2017 to $44.71 billion in 2021, increasing its global share to 2.48%. FDI trends show fluctuations, peaking at ₹6,414.67 crore in 2019–20 and declining sharply in 2020–21 due to COVID-19. Despite growth potential and resource availability, the sector faces a critical shortage of skilled manpower, requiring targeted strategies to enhance productivity and profitability.