Ultra-High Temperature (UHT) processing and aseptic packaging
Involves producing dairy products with a longer shelf life
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 42 Mega Food Parks (MFPs) to be set up in the country under the Mega Food Park Scheme. Currently, 17 Mega Food Parks have become functional.
Click here to know more about Mega Food Park Projects approved by MoFPI.
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
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 1.85 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.
The key sub-segments of the Food Processing industry in India are: Dairy, Fruits & Vegetables, Poultry & Meat processing, Fisheries, Food retail etc.
UAE keen to invest in food processing, tourism and infra in HP.
LOTS Wholesale Solutions opens a Cash and Carry store in Delhi, second of its 15 planned distribution stores across India
Union cabinet approves agricultural export policy
Government plans to set up NBFC with $ 278.3 mn to fund food processing firms
Congelados De Navarra, Spain’s leading food processing company, is all set to invest $ 43.5 mn in Punjab, with the establishment of a food processing unit in Machiwaara, Ludhiana. The project will generate direct employment for 400 and indirect for 5,000 people in the state.
Amazon Retail India, the global company's food retail business in India, has received an infusion of $ 1.6 mn from the parent company, as per regulatory filings. Amazon has committed to invest up to $ 500 mn in its food retail business, for which it has kicked off a pilot in Pune.
DXN Industries plans to invest $ 27 mn to set up agro-industry in Siddipet district, Telangana.
Future Group to invest $ 51.8 mn to open 140 exclusive FBB outlets
The Food Processing Park at Vinchur in Nashik district has attracted an investment of $ 150 mn, and it is expected to generate 5,400 jobs. A total of 15 food processing units have signed MoUs with the state government during ‘Magnetic Maharashtra’, global investors’ summit and exhibition.
Amazon becomes the first foreign e-commerce firm to enter food retail venture in India. Amazon has rolled out its own food retailing business in India with a pilot in Pune, becoming the first foreign e-commerce firm to stock and sell food items directly to consumers.
Involves producing dairy products with a longer shelf life
Higher pasteurization and modernized mechanical systems
Surge in demand for fruits and vegetables
Frozen and processed foods offer both convenience and nutrition
Direct farmer-firm linkages; contract farming
To promote exports, increase investments and provide an inst…
Creation of processing and preservation capacities and moder…
To provide integrated and complete preservation infrastructu…
The project will focus on building an efficient milk procure…
Budget 2018-19 provides various incentives and provisions fo…
Ministry of Food Processing Industries (MoFPI) has notified…
The primary objective of the Mega Food Park Scheme (MFPS) is…
The Government of India encourages farmers in taking up proj…
To improve ease of doing business and boost investors’ confi…
To strengthen Tomato, Onion, and Potato (TOP) production clu…
SAMPADA is a comprehensive package which will result in crea…
The scheme envisages financial assistance to food processing…
MoFPI has invited proposals / Expression of Interest (EoI) f…
The ‘eligible project cost’ is the total project cost but excludes cost of land, preoperative expenses and margin money for working capital. However, interest during construction(IDC) as part of preoperative expenses and fee to PMC up to 2% of the approved grant would be considered under eligible project cost (refer para. 4.1 of guidelines, at the link).
In accordance with the provisions of Section 25(4) of the CGST Act, 2017, branches in different States are considered as distinct persons. Further, as per Schedule I, this constitutes supply made in the course or furtherance of business between distinct persons even if made without consideration. As it is an inter-State supply, the registered person is required to pay IGST.
Yes, it is mandatory to have Change of Land Use (CLU). CLU is not required in case the land is already in a designated industrial area.
FSSA 2006 is an Act enacted to keep with changing needs/requirements of time and to consolidate the laws relating to food and establish the Food Safety and Standards Authority of India. The Act was needed to bring out a single statutory body for food laws, standards setting and enforcement so that there is one agency to deal and no confusion in the minds of consumers, traders, manufacturers and investors which was due to multiplicity of food laws.
The minimum land required for setting-up a Mega Food Park is 50 acres of contiguous land and free from any kind of encumbrance. The selection of land needs to be justified in terms of connectivity and availability of basic infrastructure such as approach road, power, water etc. as also in terms of availability of raw materials/market.