Contribution of food processing industries to GDP on the rise


There is an increase in the contribution of food processing sector to India’s Gross Domestic Product (GDP) during the last three years, according to information available with the National Accounts Statistics – 2013. It says GDP contribution has increased from 1.3% in 2009-10 to 1.4% in 2010-11 and 1.5% in 2011-12.

Sharing this information in the Lok Sabha, Dr Charan Das Mahant, minister of state for agriculture and food processing industries, said, “For promoting food processing industries, government has been implementing a scheme for creation of infrastructure which includes components like (a) mega food parks; (b) cold chain, value addition and preservation infrastructure; and (c) modernisation of abattoirs. Government has also launched a new Centrally sponsored scheme – National Mission on Food Processing (NMFP) on April 1, 2012 to support food processing industry with active participation of the state/UT governments. The scheme provides for establishment of a national mission as well as corresponding missions at the state and district level for implementation of the scheme. The various components under the scheme currently being implemented relate to (i) technology upgradation/ establishment/ modernisation of food processing industries; (ii) setting up cold chain, value addition and preservation infrastructure for non-horticulture products; (iii)human resource development; and (iv) promotional activities.”

NMFP is implemented with financial contribution of Government of India and states/ union territory (UT) in the ratio of 75:25 except for North-Eastern states, where the ratio is 90:10. Further, in UTs administered by Government of India, it is funded 100% by Government of India.

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