India targets food processing at 25% of farm output within five years

Food Processing Minister Chirag Paswan said the government is targeting a rise in food processing from roughly 10–12% to 25% of farm output, supported by 100% FDI, PLI incentives and micro-processing schemes.

— Filed Wed, 22 Jul, 2026, 22:50 IST · Source ET Small Business · Updated

Food Processing Minister Chirag Paswan said India aims to raise food processing to 25% of farm output within five years, backed by reforms, 100% FDI, PLI and micro-processing schemes.

Why this matters

India’s processing push builds on its recent food-products PLI jobs signal, which reported nearly 3.3 lakh direct roles, while the national floor-wage process could raise labour costs for retailers and processors.

Leadership is steady, with 839 signals recorded in the past 90 days.