Food processing - 'A sunrise sector'
India's food ecosystem offers huge opportunities for investments with stimulating growth in the food retail sector, favorable economic policies, and attractive fiscal incentives.
Through the Ministry of Food Processing Industries (MoFPI), the Government of India is taking all necessary steps to boost investments in the food processing industry in India. The government has sanctioned 41 food parks funded under the Mega Food Parks Scheme of which 38 have final approval. In 2014, there were only 2 Mega Food Parks in the country. As of 1 August 2021 there are 22 Mega Food Parks are functioning in the country. Now the target is to take their number to more than 40.
India records close to 15% rise in export of agricultural and processed food products in April-October.
Click here to know more about Mega Food Park Projects approved by MoFPI.
- By 2025, India’s food processing industry is expected to be worth over half a trillion dollars.
- 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 in India.
100% FDI is allowed through the government approval route for trading, including through e-commerce in respect of food products manufactured or produced in India.
For further details, please refer FDI Policy
Share in India's food market
Share in total employment
Share in India's exports
World's largest producer of Spices, Milk and Pulses
World's largest processor, producer and consumer of cashew nuts
World's second largest producer of food grains, fruits, and vegetables
- Industry Scenario
- FOREIGN INVESTMENT
- INDUSTRY TRENDS
- POLICIES & SCHEMES
India’s food processing sector is one of the largest in the world and its output is expected to reach $535 bn by 2025-26.
The Food Processing sector in India has a quintessential role in linking Indian farmers 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 food processing industry engages approximately 1.93 mn people in around 39,748 registered units with fixed capital of $32.75 bn and aggregate output of around $158.69 bn. Major sectors constituting the food processing industry in India are grains, sugar, edible oils, beverages, and dairy products.
Under PMKSY, 41 Mega Food Parks, 353 Cold Chain projects, 63 Agro-Processing Clusters, 292 Food Processing Units, 63 Creation of Backward & Forward Linkages Projects & 6 Operation Green projects across the country have been approved.
The key sub-segments of the Food Processing industry in India are Fruits & Vegetables, Poultry & Meat processing, Fisheries, Food retail, dairy industry, etc.
- 296.65 mn tonnes of horticulture food grains in 2019-20
- Milk production of 198.4 mn tonnes during 2019-20
- Ranks 3rd in the world in Egg production with 114.38 billion in 2019-20
- Second largest producer of fish in the world — total fish production in 2019-20 was 14.16 MT with 7.56% of Global production
- Food grocery and food services segments, growing at a CAGR of 25% and 15%, respectively, are majorly dominating the Food Retail Sector of India.
- India shipped 12,89,651 MT of seafood worth $6.68 bn during 2019-20
- The export of other cereals increased from $44.9 mn in April-June 2020 to $231.4 mn in April-June 2021
- The export of meat, dairy and poultry products increased from $483.5 mn in April-June 2020 to $1022.5 mn in April-June 2021
Largest producer of several agri-commodities
Huge consumer base
1.3 bn consumers with increasing demand for branded food
India is the fastest growing largest economy in the world
Proactive government policies with attractive fiscal incentives
PLI schemes worth INR 10,900 crores introduced under Atmanirbhar Bharat 3.0
One District, One Product (ODOP)
Under ODOP scheme, 135 district-specific unique products for 728 districts have been identified. across the country
Industrial Land Bank Portal
GIS - based map displaying available infrastructure for setting up business operations in the state.
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Invest India closely works with
Government Ministry/ Department
- All India Food Processors Association
- Confederation of Indian Food Trade and Industry (CIFTI)
- Institution focusing on Post Harvest Technology
- List of Institutions focusing on Dairy, Meat and Fisheries
- List of Institutions focusing on Horticulture Crops
- List of SAUs offering courses in Food Science & Technology & Dairy Technology
- List of State Agricultural Universities