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256 Economic Survey 2021-22

growing at an average annual growth rate of around 11.18 per cent. The sector constituted as
much as 9.87 per cent of GVA in manufacturing in 2019-20 at 2011-12 prices. Food Processing
Industry is one of the major employment intensive segments having a share of 12.38 per cent
(at 3-digit of NIC classification) in the employment generated in all Registered Factory sector
in 2017-18. According to the latest Annual Survey of Industries (ASI) for 2017-18, the total
number of persons engaged in registered food processing sector was 19.33 lakh. Unregistered
food processing sector supports employment to 51.11 lakh worker as per the NSSO 73rd Round,
2015-16 and thus 14.18 per cent of employment in the unregistered manufacturing sector. The
share of FPI in manufacturing and the growth in the GVA of FPI (GVA-FPI) may be seen in
Figure 24.

Figure 24: Share of FPI in Manufacturing GVA (in per cent)

Source: Based on data received from Ministry of Food Processing Industries (MoFPI).

FDI in Food Processing Sector

7.55 In FPI, 100 per cent FDI is permitted under the automatic route. However, in case of
trading in respect of food products manufactured and/or produced in India including through
e-commerce, 100 per cent FDI is allowed under the Government approval route. The sector has
witnessed FDI equity inflow of US$ 4.99 billion during the period April 2014 to September
2021. The FDI equity inflow in FPI sector during April to September 2021 was US$ 410.62
million in comparison to US$ 220.42 million in the corresponding period last year. Year-wise
FDI inflows in FPI may be seen in Figure 25.

Figure 25: FDI Inflows in Food Processing Sector (in US $ million)

Source: Based on data received from Ministry of Food Processing Industries (MoFPI).