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 Food & Grocery market in India is the sixth largest in the world. Food & Grocery retail market in India further constitutes almost 65% of the total retail market in India.
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 37 food parks funded under the Mega Food Parks Scheme, 21 are operational and 16 are under implementation as on 13 January 2021.
Click here to know more about Mega Food Park Projects approved by MoFPI.
- By 2024, the Food Processing industry will potentially attract $33 bn investments and generate employment for 9 million people
- By 2025, India’s food processing sector 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.
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 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, consumer & exporter of spices
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.
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 1.93 mn people in around 39,748 registered units with fixed capital of $32.75 bn and aggregate output of around $158.69 bn. Major industries constituting the food processing industry are grains, sugar, edible oils, beverages and dairy products.
Govt of India further sanctioned over 134 food processing projects during 2020 across different states. Out of which there were 21 Agro-Processing Clusters, 47 Cold Chain, 43 Food processing unit, 8 Backward and Forward Linkages, 3 Operation Greens and 12 Food Testing Laboratories across various states. Moreover, this is going to create additional processing and preservation capacity of agricultural produce of 38.3 lakh MT per annum. These new 134 sanctioned projects are expected to leverage private investment of INR 2,026.32 cr and generated direct and indirect employment for 77,330 persons.
The key sub-segments of the Food Processing industry in India are Dairy, Fruits & Vegetables, Poultry & Meat processing, Fisheries, Food retail, etc.
- 296.65 mn tonnes of horticulture food grains in 2019-20
- Milk production of 187.7 mn tonnes during 2018-19
- Egg production of around 103.3 bn during 2018-19
- Total fish production was 13.75 MMT during 2018-19
- Food Retail market is majorly dominated by Food Grocery (growing at CAGR 25%) and Food Services (growing at CAGR 15%) segments.
- India shipped 12,89,651 MT of seafood worth $6.68 Bn during 2019-20
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