India’s food processing sector is witnessing steady momentum as the Centre ramps up investments in infrastructure, incentives and enterprise support to cut post-harvest losses and boost farmer incomes. Through a mix of flagship schemes, the Ministry of Food Processing Industries is working to strengthen the entire value chain—from farm gate to global markets.
A key pillar of this push has been the Mega Food Park scheme under the Pradhan Mantri Kisan Sampada Yojana (PMKSY). So far, 41 Mega Food Parks have been approved across the country; 25 are already operational, creating hubs for processing, storage and value addition. Although new approvals under the scheme were discontinued from April 2021, existing parks continue to play a vital role in attracting investment and generating jobs.
Since its launch in 2017–18, PMKSY has supported food processing growth through multiple components such as cold chain infrastructure, agro-processing clusters, Operation Greens, expansion of food processing capacities and related linkages. Financial support is provided as grants or subsidies, covering up to 35 per cent of eligible project cost in general areas and up to 50 per cent in difficult regions and for projects led by SC/ST entrepreneurs, farmer producer organisations and self-help groups. The Ministry facilitates these projects by inviting proposals from private and cooperative entities, rather than setting them up directly.
As of January 31, 2026, a total of 1,599 projects have been approved under PMKSY, including Mega Food Parks, drawing private investments worth ₹21,667 crore into the sector. Mega Food Parks alone have generated direct and indirect employment for over 1.01 lakh people, underlining their impact beyond infrastructure creation.
Alongside large projects, the government has also focused on grassroots entrepreneurship through the PM Formalization of Micro Food Processing Enterprises (PMFME) scheme. Operational from 2020–21 to 2025–26 with an outlay of Rs 10,000 crore, the scheme offers credit-linked capital subsidy of 35 per cent, seed capital support for self-help group members, and assistance for incubation centres, common facilities, branding and marketing. The aim is to help small units modernise, scale up and find wider markets with financial, technical and business support.
To create globally competitive food manufacturing champions, the Production Linked Incentive Scheme for Food Processing Industry is being implemented from 2021–22 to 2026–27 with an outlay of Rs 10,900 crore. Under the scheme, companies receive incentives based on incremental sales, provided the entire manufacturing chain takes place in India. Additional support is extended for overseas branding and marketing, helping Indian food products build a stronger presence in global markets.
Together, these initiatives reflect a coordinated strategy to modernise food processing, reduce wastage, create jobs and ensure better returns for farmers—positioning the sector as a key driver of rural growth and economic resilience.
A key pillar of this push has been the Mega Food Park scheme under the Pradhan Mantri Kisan Sampada Yojana (PMKSY). So far, 41 Mega Food Parks have been approved across the country; 25 are already operational, creating hubs for processing, storage and value addition. Although new approvals under the scheme were discontinued from April 2021, existing parks continue to play a vital role in attracting investment and generating jobs.
Since its launch in 2017–18, PMKSY has supported food processing growth through multiple components such as cold chain infrastructure, agro-processing clusters, Operation Greens, expansion of food processing capacities and related linkages. Financial support is provided as grants or subsidies, covering up to 35 per cent of eligible project cost in general areas and up to 50 per cent in difficult regions and for projects led by SC/ST entrepreneurs, farmer producer organisations and self-help groups. The Ministry facilitates these projects by inviting proposals from private and cooperative entities, rather than setting them up directly.
As of January 31, 2026, a total of 1,599 projects have been approved under PMKSY, including Mega Food Parks, drawing private investments worth ₹21,667 crore into the sector. Mega Food Parks alone have generated direct and indirect employment for over 1.01 lakh people, underlining their impact beyond infrastructure creation.
Alongside large projects, the government has also focused on grassroots entrepreneurship through the PM Formalization of Micro Food Processing Enterprises (PMFME) scheme. Operational from 2020–21 to 2025–26 with an outlay of Rs 10,000 crore, the scheme offers credit-linked capital subsidy of 35 per cent, seed capital support for self-help group members, and assistance for incubation centres, common facilities, branding and marketing. The aim is to help small units modernise, scale up and find wider markets with financial, technical and business support.
To create globally competitive food manufacturing champions, the Production Linked Incentive Scheme for Food Processing Industry is being implemented from 2021–22 to 2026–27 with an outlay of Rs 10,900 crore. Under the scheme, companies receive incentives based on incremental sales, provided the entire manufacturing chain takes place in India. Additional support is extended for overseas branding and marketing, helping Indian food products build a stronger presence in global markets.
Together, these initiatives reflect a coordinated strategy to modernise food processing, reduce wastage, create jobs and ensure better returns for farmers—positioning the sector as a key driver of rural growth and economic resilience.
