IDEAS home Printed from https://ideas.repec.org/p/vor/issues/2023-45-06.html
   My bibliography  Save this paper

Food Processing Industries In India: A Study For Increasing Rural Income

Author

Listed:
  • Manoj Suryavanshi

Abstract

Globally all major economies have advanced food processing ecosystems with high levels of processing (70-80 per cent against 10 per cent in India) and correspondingly higher value added per worker in agriculture. India, despite being the leader in production of several agricultural commodities, lags behind several countries in terms of value added per worker in agriculture. India’s food sector attracted $ 4.18 Bn in foreign direct investment between April 2014-March 2020. Currently, India is processing less than 10% of its agricultural output, thus, presenting immense opportunities for increasing these processing levels and leading to investments in this sector. With agriculture and its allied sectors being the largest source of livelihoods in India, 70% of its rural households still depend primarily on agriculture for their livelihood. Thus, this sector provides a huge employment generation potential as well. With the government’s focus and a favorable policy ecosystem, the food processing sector has been growing at an Average Annual Growth Rate (AAGR) of around 8.41 % between 2014-18. The sector constitutes 8.83% and 10.66% of gross value added in manufacturing and agriculture sector respectively. The Indian food industry’s output is expected to reach $ 535 Bn by 2025-26. Rising household incomes, urbanization and the growth of organized retail are currently some of the major drivers of this market. According to the latest Annual Survey of Industries (2016-17), food processing accounted for 15.95% of the total number of factories, Employment to 11.36 % of the workforce, 14.09% of the output and 16.78% of the operational factories. The Indian market is fast evolving and has seen some major changes in terms of changing consumption patterns due to urbanization, changes in the gender composition of the workforce, and growing consumption rates. The growing consumption of food is expected to reach $ 1.2 Trn by 2025-26, owing to these factors. Key words: food, processing, Industry, opportunities, development

Suggested Citation

  • Manoj Suryavanshi, 2023. "Food Processing Industries In India: A Study For Increasing Rural Income," Working papers 2023-45-06, Voice of Research.
    • Handle: RePEc:vor:issues:2023-45-06
    as

    Download full text from publisher

    File URL: http://voiceofresearch.org/Doc/Mar-2023/Mar-2023_6.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    food; processing; industry; opportunities; development;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vor:issues:2023-45-06. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Avdhesh Jha (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.