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India's Agro-Exports to Surge Past 30% Goal
28 Nov
Summary
- Processed food to exceed 30% of agriculture exports in four years.
- India's labour cost advantage attracts significant FDI interest.
- Processing levels expected to rise to 20-22% in eight years.
India's Ministry of Food Processing Industries anticipates a significant boost in processed food exports, aiming to exceed 30% of the total agriculture export basket within the next four years. This projection is supported by strong investor interest, with Foreign Direct Investors eager to capitalize on India's competitive labor costs and the supportive policy environment, including 100% FDI allowance.
The food processing sector has shown robust performance, contributing approximately 22% to current agriculture exports, up from 10% a decade ago. Officials are optimistic about securing a second Production Linked Incentive (PLI) scheme to further support growth in areas not covered by the initial round. The ministry has also achieved its highest-ever budget expenditure, nearing 90-95% utilization this year.
Furthermore, the government plans to sustain its 'umbrella scheme,' Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), to support this labor-intensive sector. With current processing levels at 11-12%, the ministry targets an increase to 20-22% over the next seven to eight years, enhancing farm-to-market efficiency and overall agricultural output.
