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  • 24 Feb 2023 GS Paper 3 Economy

    Day 93
    Question 1: What is the status of the food processing industry (FPI) in India? Discuss the major challenges and initiatives to boost FPI. (250 words)

    Question 2: India has pledged to adopt Panchamrit at the time when major developed nations are skipping their green goals. Discuss the measure to fulfill India’s pledge vis-a-vis Panchamrit. (150 words)

    Answer 1


    • Write a brief introduction about the food processing industry.
    • Mention the status of food processing industries in India and discuss the major challenges and initiatives to boost the sector.
    • Write a holistic and appropriate conclusion.


    • The food processing industry is a sector of the economy that involves the transformation of raw agricultural products into food products that are ready for consumption. It involves a variety of activities such as cleaning, sorting, processing, preserving, packaging, and distributing food products.
    • The food processing industry includes a wide range of products, such as canned goods, frozen foods, snack foods, baked goods, dairy products, meat products, and many more. The industry uses various techniques and technologies to produce safe, nutritious, and high-quality food products for consumers.


    Status of FPI in India:

    • The food processing industry (FPI) is an important sector of the Indian economy. The industry accounts for around 9% of the country's GDP and employs around 18% of the country's workforce.
    • India’s food processing sector is one of the largest in the world and its output is expected to reach USD 535 billion by 2025-26.
    • This sector is expected to generate 9 million jobs by 2024.
    • India’s food sector attracted USD 4.18 billion in foreign direct investments between April 2014 and March 2020.
    • The value of processed food exports from India was USD 38.5 billion in 2020-21, up from USD 34.9 billion in the previous year.

    Major challenges faced by the food processing industry (FPI) in India include:

    • Inadequate infrastructure: The lack of modern infrastructure, including cold storage facilities, efficient transport networks, and food processing centers, affects the efficiency of the supply chain and the quality of food products.
    • Fragmented supply chain: The supply chain for food products in India is highly fragmented, with many intermediaries, which affects the traceability and quality of products.
    • Low levels of technology adoption: The FPI in India lags behind other countries in terms of technology adoption, which affects the efficiency and quality of production.
    • Food safety and quality: The FPI in India faces several challenges related to food safety and quality, which affect consumer confidence and the export potential of Indian food products.
    • Insufficient Credit Flow: The shortage of credit is a significant challenge for the food processing industry (FPI) in India. The FPI requires significant capital investment to build and upgrade processing plants, install modern equipment, and develop efficient supply chains. However, due to the shortage of credit, FPI companies may struggle to secure the necessary funds to make these investments, which can limit their growth potential.

    To boost the FPI, the Indian government has taken several initiatives, including:

    • Pradhan Mantri Kisan Sampada Yojana (PMKSY): Launched in 2017, the PMKSY is a comprehensive scheme aimed at developing the FPI in India by creating infrastructure for the sector, improving the quality of food products, and reducing wastage.
    • National Mission on Food Processing (NMFP): The NMFP is a government initiative aimed at promoting food processing in India by providing financial assistance to entrepreneurs and businesses in the sector.
    • Ease of Doing Business: The Indian government has taken several measures to improve the ease of doing business in the FPI, including simplifying regulations and procedures and providing incentives for investments in the sector.
    • Technology Upgradation Fund Scheme (TUFS): The TUFS is a government scheme aimed at providing financial assistance for the modernization and upgradation of technology in the FPI.
    • Infrastructure Development: The government has announced plans to develop food parks and cold chains across the country to improve the infrastructure for the FPI.


    The food processing industry (FPI) in India is an important sector of the economy, contributing to the country's GDP and providing employment opportunities. However, the FPI in India faces several challenges. To address these challenges, the Indian government has taken several initiatives with continued government support and private sector participation. The FPI in India has significant growth potential, which can create jobs, reduce food wastage, and add value to the country's agricultural produce.

    Answer 2


    • Write a brief introduction about Panchamrit.
    • Discuss the measures to fulfill India's pledge toward panchamrit.
    • Write a holistic and appropriate conclusion.


    • India has put forward five key points, which are referred to as the "Panchamrit," regarding its climate action plan. These include:
      • Achieving a non-fossil energy capacity of 500 GW by 2030.
      • Sourcing 50% of its total energy needs from renewable energy sources by 2030.
      • Reducing the country's total projected carbon emissions by one billion tonnes between the present day and 2030.
      • Decreasing the carbon intensity of India's economy by 45% by 2030, based on 2005 levels.
      • Achieving the goal of net zero carbon emissions by 2070.


    • India's adoption of the "Panchamrit" as its climate action plan is a significant commitment towards addressing the global climate crisis. This pledge comes at a time when some of the major developed nations are seen as falling short of their own climate goals. To achieve the targets outlined in India's climate action plan, the following measures may be taken:
      • Accelerate the development and deployment of renewable energy technologies, including solar, wind, hydropower, and biomass, to increase the country's non-fossil energy capacity.
      • Encourage and support investments in renewable energy infrastructure and technologies by offering subsidies, tax incentives, and low-interest loans.
      • Implement policies and regulations to promote energy efficiency and conservation, including the adoption of energy-efficient building codes and standards.
      • Encourage the adoption of electric vehicles and the development of charging infrastructure to reduce carbon emissions from transportation.
      • Implement measures to reduce emissions from the industrial sector, such as the use of cleaner technologies and the adoption of sustainable production practices.
      • Promote the use of carbon capture, utilization, and storage (CCUS) technologies to reduce emissions from the power and industrial sectors.
      • Develop and implement programs to increase public awareness and engagement on climate change and promote sustainable lifestyles and practices.
      • Strengthen monitoring, reporting, and verification mechanisms to track progress towards achieving climate goals and identify areas for improvement.
      • Foster international cooperation and partnerships to share best practices, technologies, and knowledge, and leverage financial and technical resources to support climate action.

    Some of the initiatives taken in this regard:

    • National Action Plan for Climate Change (NAPCC) is a Government of India’s program launched in 2008 to mitigate and adapt to the adverse impact of climate change.
    • The Jawaharlal Nehru National Solar Mission was launched in 2010 with the primary aim of achieving grid parity by 2022.
    • National Mission for Enhanced Energy Efficiency launched by government of India to creates a market-based mechanism to enhance cost effectiveness of energy efficiency. Switching to cleaner fuels, commercially viable technology transfers, capacity building etc.


    India's commitment to adopt the "Panchamrit" as its climate action plan is a crucial step towards mitigating the impacts of climate change. The success of India's climate action plan will require cooperation and partnerships at both the national and international levels, as well as a sustained effort to track progress and identify areas for improvement. Ultimately, India's climate action plan serves as a model for other countries to follow in the global effort to address the climate crisis.

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