2022 · GS Paper 3 · Q4 · 10 marks
Elaborate the scope and significance of the food processing industry in India.
In short
India's food processing industry has vast scope because of its huge farm output, low processing levels and rising demand, and it matters for farmers' income, jobs, price stability and nutrition. Processed food was only 20.4% of USD 49.4 billion agri-food exports in 2024-25.
Model answer
Ghissu Editorial · Verified 4 Oct 2026 · 282 words
Raw-material base
India is second in rice, wheat, sugarcane, fruits and vegetables and eggs, giving every segment from dairy to marine products assured inputs.
Headroom
Processed food was only 20.4% of USD 49.4 billion agri-food exports in 2024-25 (PIB), so exports are still mostly raw commodities.
Rising demand
Urbanisation, rising incomes and working women expand packaged, ready-to-eat and dairy food markets, and millets open a new segment.
Investment pull
The sector drew USD 7.33 billion of FDI in a decade, while PLISFPI and PMFME back big and small units.
Farmers' income
Processing gives assured demand and cuts post-harvest losses of about ₹1.53 lakh crore a year (NABCONS 2022), as Amul shows for milk.
Jobs
About 2.23 million registered and 4.68 million unregistered workers (PIB 2025), plus SHG micro units under PMFME.
Price stability
Operation Greens uses storage and processing to absorb onion and tomato gluts that otherwise crash farm prices.
Nutrition and safety
Fortified, hygienically packed and FSSAI-certified foods improve dietary quality.
This model answer is indicative and the model can make mistakes; please verify key facts independently.
Practise this question
1Get the answer sheet
Sized for this question.
2Write your answer
Timed, by hand.
3Get it marked
Your score and what to fix.
This chapter in the exam
Food Processing and Related Industries7 questions
Asked in 7 of 14 sittings since 2013
- 2025Examine the scope of the food processing industries in India. Elaborate the measures taken by the government in the food processing industries for generating employment opportunities.
- 2020What are the challenges and opportunities of food processing sector in the country? How can income of the farmers be substantially increased by encouraging food processing?
All 7 questions, sorted by sub-topic, with model answers and practice.
Question from the official UPSC Civil Services (Main) Examination 2022 paper. Answer written by Ghissu's engine and checked against our editorial standards. Found an error? Tell us and we correct it within 48 hours.