Processing

India’s food processing industry has been transforming rapidly, anchored in its strong agricultural base, rising domestic demand, and supportive government policies. Looking ahead, the sector is expected to play a pivotal role in positioning India as a global food hub, leveraging scale, innovation, and value addition to serve both domestic and international markets.

India’s agricultural strength is underscored by its position as one of the world’s leading producers of multiple agricultural commodities. This diversity is translating into significant opportunities for value addition within the food processing sector. As per the Second Advance Estimates for 2024–25, horticulture production has reached around 368 MMT, including 114 MMT of fruits and 220 MMT of vegetables.

India is also the largest producer and exporter of cereal products, with rice (both Basmati and non-Basmati) accounting for nearly 95% of total cereal exports. In FY 2023–24, key export destinations included Saudi Arabia, Iran, Iraq, Benin, the United Arab Emirates, and Vietnam.

To strengthen the food processing ecosystem, the Ministry of Food Processing Industries (MoFPI) has implemented a range of initiatives:
•⁠  ⁠Mega Food Parks: 41 approved with a combined processing capacity exceeding 4 MMT, of which 24 are fully operational.
•⁠  ⁠Agro-Processing Clusters: 71 approved, with 22 already operational.
•⁠  ⁠Cold Chain Infrastructure: 394 approved projects, adding over 35 MMT of storage and preservation capacity to reduce post-harvest losses.
•⁠  ⁠Food Safety & Quality Assurance: 209 facilities established to ensure compliance with domestic and international food standards.

A vibrant food processing sector is central to transforming Indian agriculture by diversifying production, extending shelf life, and enhancing the value of farm output. It generates large-scale employment, improves farmer incomes, and enables greater integration into global markets. With sustained policy support and accelerated infrastructure development, India’s food processing industry is well positioned to emerge as a key driver of global food supply chains.