When will processed food contribute over 30% of India's agriculture exports?

Processed food is expected to contribute over 30% of India's total agriculture exports within the next four years.

Why is Foreign Direct Investment increasing in India's food processing sector?

FDI is increasing due to India's favorable labor cost differential and the sector's changed environment, with 100% FDI allowed directly.

What is the current processing level for food in India?

India's current food processing level stands at approximately 11-12%, with a target to reach 20-22% in the next seven to eight years.

Home / Business and Economy / India's Agro-Exports to Surge Past 30% Goal

India's Agro-Exports to Surge Past 30% Goal

28 Nov, 2025

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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 Agro-Exports to Surge Past 30% Goal

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.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.

India's Agro-Exports to Surge Past 30% Goal

28 Nov, 2025

•

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.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.