THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (l/C) (SHRI SUBODH KANT SAHAt)
(a) & (b): The Gross Domestic Product (GDP) of Agriculture based industry groups comprising meat,fish, fruits, vegetables
and oils, dairy products, grain milling, other food products, beverage and their growth during the Tenth Five Year Plan are
as below:-
Gross Domestic Product at Current Prices
(Rs. in crores)
Description 2003-04 2004-05 2005-06 2006-07 (Provisional)
Food Products & Beverages 51846 55772 59281 70088
Percentage contribution in GDP 2.0 1.9 1.8 1.8
Gross Domestic Product at constant prices (Base year 1999-2000)
(Rs. in crores)
Description 2003-04 2004-05 2005-06 2006-07 (Provisional)
Food Products & Beverages 46386 47245 49165 53589
Percentage contribution in GDP 2.1 2.0 1.9 1.9
(c ) & (d): Some MNCs have set up their units for manufacturing of Processed food. However, the requisite details about MNCs
working with Small Scale and Cottage Industries are not centrally maintained in the Ministry. Based on employment,entire
industrial sector including food-processing industries can be broadly classified as organized and unorganized sectors.In
terms of gross output, share of the unorganized sector is 41% as against 59% contributed by the organized sector upto the
year 2006-07. 100% Foreign Direct Investment (FDl), under the automatic route is allowed in the Food Processing Industry.
(e): Government has formulated and implemented several Plan Schemes to provide financial assistance for the establishment
and modernization of Food processing units, creation of infrastructure, support of R&D, Human Resource Development besides
other promotional measures to encourage development of food processing industries. Moreover, the Government has taken
several steps like tax reduction, waiver/reduction of excise duty, reduction of custom duty on specific food items with a
view to encourage the growth of Food Processing Industries and make them more competitive. The Ministry under its Plan
Scheme for establishing/upgrading of Food Quality Testing Labs, Implementation of Quality Systems such as Hazard Analysis
Critical Control Points (HACCP), International Organization for Standardization (ISO) 9000, Promotion of research and
Development, Capacity building and Human Resources Development, provides assistance to food processing industries to enable
them to increase the contribution of Food Processing Industries to the GDP in the 11th Five Year Plan.
