Ultra-High Temperature (UHT) processing and aseptic packaging
Involves producing dairy products with a longer shelf life
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 further details, please refer FDI Policy
32%
Share in India's food market
11.6%
Share in total employment
13%
Share in India's exports
142%
Cropping intensity
India ranks first among the world's milk-producing Nations since 1998.
World's largest processor and third largest producer of cashew nuts
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
Recent Announcements
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.
Scraped surface heat exchangers and higher pasteurization
Higher pasteurization and modernized mechanical systems
Higher consumption of horticulture crop
Surge in demand for fruits and vegetables
Frozen and processed foods
Frozen and processed foods offer both convenience and nutrition
Strengthening procurement
Direct farmer-firm linkages; contract farming
Investible Projects
Investment Opportunities in Food Processing
-
Projects
43
-
Opportunity
$904.6 mn
-
Promoters
42
-
District
43
-
Private Projects
33
-
Govt. Projects
10
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 hereHow 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 is ’eligible project cost’ in Mega food park?
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).
A registered person is sending semi-cooked food from his manufacturing unit at Gurugram to his branch in Delhi. Is he required to pay any tax?
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.
Stakeholders
Government Ministry/ Department
Industry Association
- 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