Sector profile

Food processing

Food processing links India's farm output to factories, cold chains and export markets. This page sets out the sector's weight in the economy using Government of India data, and the Uttar Pradesh incentives that apply to a new or expanding unit.

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Stacked sacks of rice inside an Indian rice mill — Photo: Tarunteja kenguva via Wikimedia Commons, CC BY-SA 4.0

Importance to the Indian economy

Food processing converts raw farm produce into products with a longer shelf life and a higher value, which reduces post-harvest loss and raises the price realised by farmers. The Ministry of Food Processing Industries (MoFPI) estimates the sector's gross value added at ₹2.24 lakh crore in 2023-24 (constant 2011-12 prices), about 7.9% of manufacturing GVA.

It is also a large employer of factory labour: as per the Annual Survey of Industries 2023-24, the sector accounts for 12.83% of employment in the registered manufacturing sector, and processed food made up 20.4% of India's agri-food exports in 2024-25 (PIB, 2026).

For Uttar Pradesh, with its large farm base and India's largest milk output, food processing is one of the most direct routes from the state's farm base to industrial investment, which is why the state has a dedicated policy with capital, interest and mandi fee support.

The last three years in official data

Figures as published by the Government of India source linked against each year. We do not estimate or fill gaps.

Gross value added by food processing industries₹ lakh crore, constant 2011-12 prices

2021-22

₹1.90 lakh cr

2022-23

₹2.08 lakh cr

2023-24

₹2.24 lakh cr

Bars start at zero and are scaled to the largest value shown.

Year	Value (₹ lakh crore, constant 2011-12 prices)
2021-22	₹1.90 lakh crSource: MoFPI Annual Report 2024-25, Table 2.1 (based on MoSPI National Accounts)
2022-23	₹2.08 lakh crSource: MoFPI Annual Report 2024-25, Table 2.1 (based on MoSPI National Accounts)
2023-24	₹2.24 lakh cr (1st revised estimate)Source: MoFPI Annual Report 2024-25, Table 2.1 (based on MoSPI National Accounts)

Share of food processing in manufacturing GVA% of manufacturing GVA, constant prices

2021-22

7.40%

2022-23

8.28%

2023-24

7.93%

Bars start at zero and are scaled to the largest value shown.

Year	Value (% of manufacturing GVA, constant prices)
2021-22	7.40%Source: MoFPI Annual Report 2024-25, Table 2.1
2022-23	8.28%Source: MoFPI Annual Report 2024-25, Table 2.1
2023-24	7.93%Source: MoFPI Annual Report 2024-25, Table 2.1

Other official data points

Employment: 12.83% of registered manufacturing employment (ASI 2023-24). Source: PIB, 2026 (PRID 2224667).
Exports: processed food was 20.4% of agri-food exports in 2024-25. Source: PIB, 2026 (PRID 2224667).

What is not shown, and why: GVA for 2024-25 and 2025-26 had not been published in the MoFPI series when we checked, so the table stops at 2023-24.

UP incentives for this sector

The Uttar Pradesh policy that applies to this sector, with the main incentives as stated in the policy or on Invest UP. Rates, caps and eligibility conditions are summarised; the policy text and its guidelines decide each case.

In force

Uttar Pradesh Food Processing Industry Policy 2023

Policy period up to 2027 (administered by the Directorate of Horticulture & Food Processing)

Incentive	Support (as per the policy)
Capital subsidy, new units	35% of plant & machinery and technical civil works, up to ₹5 crore
Capital subsidy, expansion / modernisation	25%, up to ₹1 crore
Interest subsidy (5 years)	Up to ₹50 lakh
Cold chain	35% capital subsidy
Agro-processing clusters	35%, up to ₹10 crore
Stamp duty and mandi fee	100% stamp duty exemption on land; mandi fee exemptions

Source: Invest UP policy page; Policy document (PDF)

Full guide: UP Food Processing Industry Policy

Applicable across sectors. A manufacturing project of ₹50 crore or more can also be evaluated under the UP Industrial Investment & Employment Promotion Policy 2022 (valid to 3 Nov 2027), and an MSME unit under the UP MSME Promotion Policy 2022. As a rule only one state policy can be used for the same investment, so compare the sector policy with these general policies on your own numbers before applying. Central schemes can often be combined with state support: see subsidy stacking.

Sources

Scheme terms change; verify on the official portal; last checked 4 Oct 2026. This page is general information for planning, not a guarantee of eligibility, sanction or disbursement. See our Terms of Use & Disclaimer.

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