New Delhi, Aug 12 (IANS): Driven by the emergence of innovative startups, India's food processing industry is likely to grow by 47 per cent to reach $1,274 billion by 2027, according to a report.

According to a report by the Confederation of Indian Industry (CII), in collaboration with Danfoss India, Tamil Nadu leads the country’s export of processing fruits, juices and nuts.

The state has a 33 per cent share by quantity and 27 per cent by value, exporting 2,08,370 metric tonnes worth $220.81 million in 2023-24.

The research provided insights into emerging trends, technologies, and export prospects, empowering businesses to make well-informed decisions and capitalise on the sector's potential.

Ravichandran Purushothaman, CII National Council for Cold Chain and Agri Logistics Chairman, the study enables businesses to make informed decisions and tap into the sector’s potential South India’s food processing sector is on the cusp of a revolution, with innovative segments like millets, ready-to-eat and plant-based dairy alternatives unlocking a treasure trove of economic opportunities for farmers.

“The newly launched report reveals that technology holds the key to supercharging this growth, ensuring the highest standards of safety and quality and propelling India’s exports onto the global stage,” Purushothaman added.

The innovative technology ensures optimal milk temperatures with minimised energy consumption, which brings down the carbon footprint, addressing critical dairy processing challenges and supporting India’s sustainable food production goals.

Meanwhile, the Ministry of Food Processing Industries has sanctioned financial support to 92,549 micro food processing enterprises till June 30 this year under its Rs 10,000 crore Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme.

The scheme, which is operational for a period of five years from 2020-21 to 2024-25 offers technical, business and financial support to all the unorganised micro food processing units.

Under sub-schemes of the PMKSY, the Ministry provides mostly credit-linked financial assistance in the form of capital subsidy to entrepreneurs with a total outlay of Rs 5,520 crore for the 15th Finance Commission cycle.

A total of 172 food processing companies have been given sanctions for assistance under various categories of the scheme so far, according to the government.