AGRI AND FOOD PROCESSING

INDIA LANDSCAPE

India's food processing market will reach USD 535 bn by FY2025
Approximate share of 40% of the total agro-food business in India
Rajasthan was the 11th largest exporting state in India in FY 2022-23 with exports valued at USD 9.7 bn

Received FDI inflow worth USD 12,354 mn from April 2000 to September 2023
18.3% Contribution of Agriculture to National GDP in FY 2022-23
USD 26.7 bn Increase in India's Agri-Exports in FY 2022-23
USD 109 bn Outlay on Production Linked Incentive Scheme for Food Processing Industry (PLIFPI) FY 2021-22 to FY 2026-27
USD 535 bn Expected food processing market by FY 2025-26
USD 536.76 mn Largest Livestock population in the world
Share of processed food exports in agri-exports has increased substantially from 13.7% in FY 2014-15 to 25.6% in FY 2022-23
Export of agricultural and processed food products rose close to USD 51 bn in FY 2022-23.
Total FDI received from Apr 2000 till Mar 2024 was USD 12.58 bn

Agriculture and allied sectors contributed to 29 percent in Rajasthan's Gross State Value Added (GSVA) at current prices. (2022-23)
Rajasthan is the #1 producer of Moth Beans, Mustard, Pearl Millet (Bajra), Guar Gum, Fenugreek, Isabgol, medicinal & aromatic crops, and coarse wool (with largest population of Goats & Camels).
Rajasthan has the 2nd largest livestock population in India with significant number of cattle, sheep and goats

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Rajasthan is committed to the development of the agri- and agro-processing sector through infrastructure support as given below:

Agro Food Parks: Infrastructure like Agro Food Parks at Kota, Jodhpur, Sriganganagar and Alwar has been developed by RIICO. These parks provide essential facilities for food processing and value addition. Rajasthan has also one approved Mega Food Park in Bikaner and one operational Mega Food Park in Ajmer.
Warehousing and Cold Chains: There is a focus on enhancing storage facilities to reduce post-harvest losses. The state is building new warehouses and cold chain facilities to ensure the safe storage and transportation of perishable goods.
Cluster-Based Approach: Rajasthan promotes a cluster-based approach for the development of agro-processing units. This helps in minimizing post-harvest losses and improving the efficiency of the supply chain. State has 3 Agro processing clusters in Jaipur, Jodhpur & Tonk.

All major strategic locations in the State are well connected to domestic and export markets through all modes.

Rajasthan provides access to around 40% of India's market in the neighboring states and also serve as an indispensable medium of transport between North-Indian states and the ports on the Western coastline of India
Rajasthan has 3rd largest network of national highways, 2nd largest rail network in India, providing easy access to major ports such as Mundra, Kandla and JNPT, nine Inland Container Depots, one Air Cargo Complex as well as seven airports with direct international and national connectivity
Further, over 58% of State's area within Delhi Mumbai Industrial Corridor (DMIC) and 39% of the Dedicated Freight Corridor (DFC), connecting Delhi to Mumbai, passes through the State.

Rajasthan has extensive presence of abundant, skilled and cost-effective labor pool.

Universities: There are 50+ private universities and 27 state universities and 1 Central University, such as Sri Karan Narendra Agriculture University, Jobner, Agriculture University, Jodhpur, Swami Keshwanand Rajasthan Agriculture University – Bikaner, Maharana Pratap University of Agriculture And Technology – Udaipur etc.
Technical Institutes: The state is home to numerous technical institutes, including prestigious ones like the Indian Institute of Technology (IIT) Jodhpur and Indian Institute of Management, Udaipur, Indian Institute of Information Technology (IIT) – Kota,

Employment booster up to 15% on chosen ACI
Additional incentives: green incentives, freight subsidy, cluster incentives, training and skilling incentive

10% thrust booster on top of ACI chosen, OR
5% interest subsidy for 5 years, OR
20% anchor booster on top of ACI chosen to first 3 units in a region / sector
Policy allows phasing of investment without loss in benefits
Additional flexibility for investors to design own incentive mix through customized packages

MSMEs are exempted from approvals and inspections under any Rajasthan Law for 5 years

RajNivesh portal provides a single point, online interface and a time-bound clearance system by acting as a one-stop information / registration / approval / tracking centre for clearances & approvals.
The platform integrates 120+ services across 14 departments, emphasising the state's commitment to the implementation of investor-friendly policies that enhance ease of doing business and promote sustainable development policies that enhance ease of doing business and promote sustainable development.
Automated Processes: Automated systems for services like registration, licensing, and payment process.
Reduced Compliance Burden: Simplified processes of getting regulatory approvals from the respective state departments.
Time-Bound Services: Providing services in a timebound manner, ensuring prompt delivery.
Dedicated Teams: Specialized teams for investor support, handholding, and facilitation.

100% FDI allowed under automatic route in Agri and Food Processing Sector