Introduction
India’s food processing sector is witnessing transformative growth, fueled by the government’s strategic initiatives. The Ministry of Food Processing Industries (MoFPI) has introduced flagship schemes like Pradhan Mantri Kisan Sampada Yojana (PMKSY), Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), and the Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) Scheme. These programs aim to enhance infrastructure, reduce post-harvest losses, and create a globally competitive food processing ecosystem. This blog outlines the key opportunities for businesses and entrepreneurs to capitalize on these initiatives.
Key Government Schemes Driving the Sector
1. Pradhan Mantri Kisan Sampada Yojana (PMKSY)
Since its inception in 2016-17, PMKSY has been pivotal in creating post-harvest infrastructure and processing facilities. It provides credit-linked financial assistance to entrepreneurs for establishing cold storages and preservation units.
Investment Trends
Year Project Cost (Rs. in Crore) Growth (%) 2019-20 1875.20 – 2020-21 1890.53 0.82 2021-22 2378.12 25.79 2022-23 1729.97 -27.25 2023-24 1665.65 -3.72 2024-25* 732.17 –
(*Data as of October 31, 2024)
Impact
- Units Established: 643
- Employment Generated: 2,52,025
2. Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME)
Launched in 2020-21, PMFME focuses on providing financial, technical, and business support to upgrade micro food processing enterprises and establish new units.
Investment Trends
Year Project Cost (Rs. in Crore) Growth (%) 2021-22 390.99 – 2022-23 2483.14 535.09 2023-24 5198.30 109.34 2024-25* 2335.18 –
(*Data as of October 31, 2024)
Impact
- Units Established: 1,08,580
- Employment Generated: 3,78,005
3. Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)
Introduced in 2021-22, PLISFPI aims to establish global food manufacturing champions and promote Indian brands in international markets. Beneficiaries are required to establish their units by March 31, 2024.
Investment Trends
Year Project Cost (Rs. in Crore) Growth (%) 2020-21 663 – 2021-22 3106 368.48 2022-23 7067 127.53 2023-24 8910 26.08
Impact
- Projects Completed: 213
- Employment Generated: 2,89,832
Foreign Direct Investment (FDI) in Food Processing
The sector continues to attract significant FDI, demonstrating global confidence in India’s food processing potential. Year FDI (US$ Million) 2019-20 904.7 2020-21 393.41 2021-22 709.72 2022-23 895.34 2023-24 608.31 2024-25* 368.37
(*Data as of September 2024)
Opportunities for Entrepreneurs
The food processing sector offers immense potential for businesses to thrive. Here’s how entrepreneurs can leverage these initiatives:
1. Avail Financial Assistance
Schemes like PMKSY and PMFME provide grants and subsidies to reduce financial barriers for setting up or expanding food processing units.
2. Tap into Growing Markets
The PLISFPI scheme supports Indian brands to establish a global footprint, offering avenues to scale operations and enter international markets.
3. Contribute to Employment and Growth
By setting up processing units, entrepreneurs can generate local employment, contributing to socio-economic development.
4. Explore FDI Opportunities
Collaborating with foreign investors can bring advanced technologies, expertise, and capital into your business.
How Shiva Consultancy Group Can Help
At Shiva Consultancy Group, we specialize in guiding businesses through:
- Navigating Schemes: Helping you understand and apply for government schemes.
- Project Execution: Offering end-to-end support in planning, implementation, and monitoring.
- Strategic Partnerships: Facilitating connections with FDI stakeholders.
- Skill Development: Organizing training programs for workforce enhancement.
Conclusion
India’s food processing sector is ripe with opportunities for growth and innovation. By leveraging government schemes and strategic partnerships, entrepreneurs can play a pivotal role in transforming the industry. Shiva Consultancy Group is here to assist you every step of the way.
For more insights and support, visit shivagroup.org.in or contact us at rksjha@live.in.