Snapshot

Food processing - 'A sunrise sector'

India's food ecosystem offers huge opportunities for investments with stimulating growth in the food retail sector, favourable economic policies and attractive fiscal incentives. The Government of India through the Ministry of Food Processing Industries (MoFPI) is also taking all necessary steps to boost investments in the food processing industry. The government has sanctioned 42 Mega Food Parks (MFPs) to be set up in the country under the Mega Food Park Scheme. Currently, 12 Mega Food Parks have become functional.

  • By 2020, Indian Food and retail market is projected to touch $ 482 bn
  • By 2020, the Indian Dairy industry is expected to double to $ 140 bn
  • By 2020, the Food processing industry has the potential of attracting $ 33 bn of investment
  • 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 to FDI Policy

  • 32%

    Share in India's food market

  • 11.6%

    Share in total employment

  • 13%

    Share in India's exports

  • 142%

    Cropping intensity

A

India ranks first among the world's milk-producing Nations since 1998.

B

World's largest processor and third largest producer of cashew nuts

C

World's second largest producer of food grains, fruits, and vegetables

Industry Scenario

The Processed food market is expected to grow to $ 543 bn by 2020 from $ 322 bn in 2016, at a CAGR of 14.6%.

Food processing has an important role to play 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 industry engages approximately 1.77 mn people in around 38.6 thousand registered units with fixed capital of $ 29.7 bn and aggregate output of around $ 144.6 bn. Major industries constituting the Food processing industry are grains, sugar, edible oils, beverages and dairy products.

Food processing industry in India has two major sub-segments namely food and grocery retail (92%) and the foodservice market (8%).

Major food categories such as dry food grocery, dairy products, fresh produce, perishables, spices have a share of 34.7%, 16%, 15.6%, 8% and 6% respectively in the Food processing industry.

Growth Drivers

  • Agri-commodity hub

    Largest producer of several agri-commodities

  • Huge consumer base

    1.3 bn consumers with increasing demand for branded food

  • Strong economy

    Fourth largest economy in terms of purchasing power parity

  • Conducive policies

    Proactive government policies with attractive fiscal incentives

  • Open

    Dairy Processing & Infrastructure De…

    The project will focus on building an efficient milk procure…

  • Open

    Highlight of Budget 2018-19 in respect o…

    Budget 2018-19 provides various incentives and provisions fo…

  • Open

    NABARD

    The Government of India encourages farmers in taking up proj…

  • Open

    Nivesh Badhu

    To improve ease of doing business and boost investors’ confi…

  • Open

    Pradhan Mantri Kisan Sampada Yojana (PMK…

    SAMPADA is a comprehensive package which will result in crea…

  • Open

    Scheme for Cold Chain, Value Addition an…

    The scheme envisages financial assistance to food processing…

  • Open

    Scheme for creation of backward and forw…

    MoFPI has invited proposals / Expression of Interest (EoI) f…

Major Investors

Data on Map

FAQ

Frequently
Asked Questions

  • How much grant-in-aid is provided for irradiation facilities under Scheme for Cold Chain, Value Addition and Preservation Infrastructure under PMKSY?

    For irradiation facilities grant-in-aid will be provided @ 50% for General Areas and @ 75% for North East States, Himalayan States, ITDP Areas & Islands
    For more information, click here

     

  • How much grant-in-aid is provided for value addition and processing infrastructure under Scheme for Cold Chain, Value Addition and Preservation Infrastructure under PMKSY?

    For value addition and processing infrastructure including frozen storage/ deep freezers associated and integral to the processing, grant-in-aid @ 50% for General Areas and @ 75% for North East States, Himalayan States, ITDP Areas & Islands, will be provided

    For more information, please click here
     

  • How much grant-in-aid is provided for storage infrastructure under Scheme for Cold Chain, Value Addition and Preservation Infrastructure under PMKSY?

    For storage infrastructure including pack house and pre cooling unit, ripening chamber and transport infrastructure, grant-in-aid @ 35% for General Areas and @ 50% for North East States, Himalayan States, ITDP Areas & Islands, of the total cost of plant & machinery and technical civil works will be provided.

    Please visit the following link for more information.

  • What types of industries/units are permitted in Mega Food Park?

    Only food processing industries/units that make food products fit for human and animal consumption are permitted to be set up in the Mega Food Parks. Packaging facilities of food products as ancillary to the food processing industries will also be eligible for setting up in the Mega Food Parks. However, setting up of alcoholic beverage unit as an anchor unit will not be allowed.

  • Is Atta/Maida/Besan supplied in bulk liable to tax under GST?

    Outward supply of these goods, if effected without registered brand name, is exempt under GST. However, if the outward supply is made under a registered brand name and put up in unit container then it would be liable to tax @ 5%.

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