Incentive Scheme Sparks Investment in India's Food Processing Sector
The Indian government's production-linked incentive scheme for food processing attracted Rs 9,207 crore in investments across 22 states, adding significant processing capacity and creating thousands of jobs. As the scheme concludes, officials evaluate its extension amid significant growth in sales and exports, particularly in high-value products like breaded shrimp.
- Country:
- India
The government is assessing the continuation of a production-linked incentive scheme for food processing after attracting investments of Rs 9,207 crore in 22 states over six years, a senior official said on Tuesday. The program, initiated in 2021-22 with a budget of Rs 10,900 crore, is ending this fiscal year.
The initiative has significantly increased processing capacity and led to 3,29,000 new jobs, according to the Ministry of Food Processing Industries. Sales under the scheme witnessed a 10.58 percent compound annual growth rate (CAGR), and export sales grew by 7.41 percent CAGR, despite global challenges.
The marine sector presented difficulties due to increased competition from Ecuador and Vietnam. However, the shift to higher-value products by Indian companies facilitated recovery, with breaded shrimp growing at 11.5 percent CAGR since 2019-20.
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