To improve ease of doing business and boost investors’ confidence, a dedicated investors’ portal "Nivesh Bandhu" has been set up by MoFPI aimed at easing the process for investors.
Food processing 'A sunrise sector'
With a massive food market that is fast expanding, exciting growth in the retail sector and attractive economic policies and fiscal incentives, India's food ecosystem is the place to be in. Food sector has emerged as high growth and high-profit sector due to its immense potential for value addition, particularly within the food processing industry. The Industry is rapidly expanding with 42 mega food parks being set up with an allocated investment of USD 2.3 bn.
- By 2020, Indian dairy industry is expected to double to USD 140 bn
- By 2020, Indian food and retail market is projected to touch USD 482 bn
- By 2020, food processing sector has the potential of attracting USD 33 bn of investment in coming years
- By 2030, Indian annual household consumption to treble, making India 5th largest consumer
100% FDI is permitted under the automatic route in food processing industries
100% FDI is allowed through government approval route for trading, including through e-commerce in respect of food products manufactured or produced in India.
For more details refer FDI Policy 2017
- World's largest producer of milk
- World's largest processor and third largest producer of cashew nuts
- World's second largest producer of food grains,fruits and vegetables
The processed food market , currently valued at USD 322 bn in 2016, is expected to grow to USD 543 bn by 2020 at a CAGR of 14.6%.
Food processing has an important role to play in linking Indian agriculture to consumers in the domestic and international markets. The Ministry of Food Processing Industries (MoFPI) is making all efforts to encourage investments across the value chain. The sector has a total of 38, 603 registered units with fixed capital of USD 29.7 bn (INR 19,199,360 Lakh), around 1.77 mn persons engaged and aggregate output of around USD 144.6 bn (INR 9,341,49 crores). Major industries constituting the food processing sector are grains, sugar, edible oils, beverages and dairy products.
- Major food categories and their share in the food processing sector are as follows:
- Dry food grocery: 34.7%
- Milk & dairy products: 16%
- Fresh produce: 15.6%
- Perishables: 8%
- Spices: 6%
- Others: 19.7%
- Indian food processing industry has two major sub-segments:
- Food and grocery retail (92%)
- Foodservice market (8%)
- Share in India's Food market
- Employment share
- Constitution of Indian exports
- Cropping intensity
FDI inflows (in USD) in Apr 2000 - Jun 2017
FDI equity inflows (in USD) in Apr 2014 - Mar 2017
Share in total FDI inflows
November 2017 - ITC, would invest over USD. 1.55 bn in food processing and logistics facilities, PepsiCo, along with its partners, would invest USD 2 bn in the next 5 years. Hershey Co is likely to invest USD 50 mn in the next 5 years
November 2017 - Cargill, a leading food and agriculture player is planning to invest USD 240 mn in India over the next 5 years
November 2017 - Coca-Cola Company, its bottling partners and its fruit suppliers and processors in India, will contribute more thanUSD 1.7 bn in the agri ecosystem of the country over the next 5 years, spanning the entire supply chain from Grove to Glass through a unique concept called the Fruit Circular Economy.
March 2017 - Global e-commerce giant, Amazon is planning to enter the Indian food retailing sector by investing USD 515 mn in the next 5 years