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Day 48 – Q 2. Do you think the food processing industry has enough potential to create jobs for the burgeoning labour force in India? Critically comment.

2. Do you think the food processing industry has enough potential to create jobs for the burgeoning labour force in India? Critically comment.

क्या आपको लगता है कि खाद्य प्रसंस्करण उद्योग के पास भारत में श्रमशक्ति के लिए रोजगार पैदा करने की पर्याप्त क्षमता है? समालोचनात्मक टिप्पणी करें।


India’s food processing sector continues to grow in response to changing demographics, evolving preferences for branded and convenient items, retail and food service sector modernization, and government efforts to develop food manufacturing.


The food processing industry is a key contributor to employment generation in India. By 2024, food processing sector is expected to employ 9 million people in India and expected to generate about 8,000 direct and 80,000 indirect jobs in the state, the ASSOCHAM-Grant Thornton joint study on ‘Food Retail: Investment: Infrastructure’ noted.

As the consumers in the country are becoming more health- conscious, the demand for nutritious food is growing proportionately. In addition, rising number of working women and nuclear families is resulting in high demand for ready-to-eat and frozen food. Thus, overall India’s food value chain is poised to create multiple opportunities for investment and employment in storage infrastructure, farming, retail and quality control.

  • It is estimated that Indian food processing industry is pegged close to US$ 121 billion to US$ 130 billion.
  • With the second largest arable land in the world, it is the largest producer of milk, pulses, sugarcane and tea in the world and the second largest producer of wheat, rice, fruits and vegetables.
  • Despite the massive production, the degree of processing is low and ranges between 2-35% for different produce.
  • India is one of the top rankers in the production of bananas, guavas, ginger, papaya etc although processing levels in the country remain limited, which indicates an extensive opportunity in the food processing sector.
  • Indian food and retail market is projected to touch US$ 482 billion by FY 2020 from the current level of US$ 258 billion in 2015.
  • Employment areas: Farm related employment in agricultural sector (Allied activities like dairying), self-employment opportunities particularly to women, development and management of infrastructural facilities like storage and processing centres, transportation network, research and innovation to add value to the product and others.

Though India ranks first in production of milk, pulses and tea and second in production of fruits and vegetables, its share in the world food trade is less than two per cent. Thus the policymakers have identified food processing as a key sector in encouraging labour movement from agriculture to manufacturing.

Government of India has come out with SAMPADA scheme to give boost to Food Processing Industry in the country. To reduce post-harvest losses of fruits and vegetables, Government plans to set up 500 cold chain projects in the country.


However, in order to achieve job creation potential, several issues that plague food processing industry like In-adequate infrastructural facilities, Poor quality and hygiene norms, need for greater investment and access to global market, Research and innovation in the sector require attention.

Best answer: Dazy Rani

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