The World Bank Group has stated that South Asia has strong potential to emerge as a global leader in food systems, with the agriculture sector currently employing approximately 43 percent of the region's workforce. This was highlighted in a statement by the Ministry of Food Processing Industries.
Policy Dialogue in Ahmedabad
The Ministry of Food Processing Industries (MoFPI), Government of India, in partnership with the World Bank Group-led SAPLING initiative, inaugurated the Regional High-Level Policy Dialogue titled "Unlocking Value: Advancing Food Processing for Employment Generation and Sustainable Growth in South Asia" in Ahmedabad, Gujarat, on Wednesday.
Critical Point for Development
Noting that the region stands at a critical point in its development journey, with millions of young people entering the workforce every year, the release added that creating sustainable jobs has become one of the region's most pressing priorities.
The World Bank Group highlighted that South Asia's agriculture sector contributes only around 16 percent of the region's GDP, despite being valued at over USD 700 billion. Additionally, more than 30 percent of food produced in South Asia is lost or wasted every year, which is enough to feed nearly 300 million people.
Transforming Food Systems
The World Bank Group emphasized that transforming food systems beyond the farm can unlock significant opportunities for employment, investment, economic growth, and poverty reduction. The next phase of agricultural transformation lies in expanding food processing, storage, logistics, marketing, and value addition, which can create millions of productive jobs while reducing food losses and increasing farmers' incomes.
India's Progress
India's food grain production has increased from 51 million tonnes in 1950-51 to over 330 million tonnes. The release further noted that India's processed food exports have more than doubled over the past decade, surging from approximately USD 4.9 billion to over USD 10 billion. The food processing sector currently contributes around 9 percent of manufacturing value added and nearly 13 percent of India's exports.
Despite this progress, the country's food processing currently accounts for only a small share of total employment, and a large proportion of agricultural produce still remains unprocessed. Strengthening cold chains, storage facilities, logistics networks, and market linkages can substantially increase value creation across the sector.
Global Leadership Potential
South Asia can emerge as a global leader in food systems. Rapid urbanization, a growing middle class, rich agro-biodiversity, and rising demand for safe and high-quality processed food are creating new opportunities for investment and innovation, the release said.
World Bank Initiatives
The World Bank Group is advancing a combined approach through AgriConnect and SAPLING. AgriConnect is a global platform aiming to connect 300 million farmers to markets by 2030 through investments in infrastructure, policy reforms, and private capital mobilization. The initiative is already supporting projects and reforms across countries including India, Bangladesh, and Sri Lanka.
