India’s Food Processing Sector Sees Over $3.1 Billion Investment in Five Years

Ziraat Times News Desk

New Delhi, Mar 14: Foreign Direct Investment (FDI) in India’s food processing sector has witnessed steady inflows over the past five years, strengthening the industry and supporting infrastructure development, the government informed Parliament on Friday.

In a written reply in the Rajya Sabha, Minister of State for Food Processing Industries Ravneet Singh Bittu said the sector attracted over $3.14 billion in FDI between 2020–21 and 2024–25, reflecting growing investor interest in India’s food processing industry.

FDI inflows over five years

According to official data, FDI inflows into the sector were:

• $393.41 million (₹2,934.12 crore) in 2020–21

• $709.72 million (₹5,290.27 crore) in 2021–22

• $895.34 million (₹7,194.13 crore) in 2022–23

• $608.31 million (₹5,037.07 crore) in 2023–24

• $540.76 million (₹4,557.27 crore) in 2024–25

The minister said these investments have contributed to strengthening food processing infrastructure and boosting value addition in the agricultural sector.

Government schemes supporting the sector

The government is also supporting the industry through several flagship schemes implemented by the Ministry of Food Processing Industries (India).

Under the Pradhan Mantri Kisan Sampada Yojana (PMKSY), the government spent ₹540.11 crore in 2024–25, while earlier years recorded expenditures of ₹666.21 crore in 2023–24 and ₹561.92 crore in 2022–23.

Another key programme, the PM Formalisation of Micro Food Processing Enterprises Scheme (PMFME), has also seen rising investments. The scheme recorded ₹1,023.10 crore in actual expenditure in 2024–25, compared with ₹778.84 crore in 2023–24.

Production-linked incentives

The government is also promoting growth through the **Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), implemented since 2021–22.

Under the scheme, actual expenditure stood at ₹450.49 crore in 2024–25, following ₹590.50 crore in 2023–24 and ₹489.83 crore in 2022–23.

Officials said these programmes aim to strengthen food processing infrastructure, support micro food enterprises, enhance value addition to agricultural produce, and boost exports from the sector.

The government said continued investments, combined with policy support and infrastructure development, are expected to further accelerate growth in India’s food processing industry in the coming years.