2025 · GS Paper 3 · Q14 · 15 marks
Examine 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.
In short
India's food processing industry has vast scope from abundant farm output, post-harvest losses, changing diets and export headroom, and government schemes now target jobs across the value chain. PMFME alone has sanctioned 1,44,517 credit-linked loans to formalise micro food units.
Model answer
Ghissu Editorial · Verified 4 Oct 2026 · 275 words
Input abundance
A diverse, year-round harvest, from Nashik onions to Andhra shrimp, gives processors a vast raw-material base.
Wastage as opportunity
NABCONS (2022) put post-harvest losses at about ₹1.53 lakh crore a year.
Changing demand
Urbanisation and working women drive ready-to-eat and dairy demand; the sector outgrew manufacturing from 2013-14 to 2023-24.
Untapped exports
Processed food was only 20.4% of USD 49.4 billion agri-food exports in 2024-25.
PM Kisan SAMPADA
1,608 projects in cold chains and agro-processing clusters create jobs near farms.
PLISFPI (2021)
₹10,900 crore of incentives for scale and Indian brands, expected to create about 2.5 lakh jobs.
PMFME
1,44,517 credit-linked loans and seed capital for over one lakh SHG members in 2024-25 formalise micro units.
Easier entry
100% FDI in trading of Indian-made food and FSSAI's 2026 registration relief lower start-up costs.
Faster disbursal
Use the under-spent ₹2,000 crore Special Food Processing Fund.
Skills and linkages
Link cluster skilling and FPO contract farming to processors.
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
- 2022Elaborate the scope and significance of the food processing industry in India.
- 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 2025 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.