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
Cropping intensity
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.
Key facts:
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
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
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
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.
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.
By: Invest India
By: Invest India
By: Invest India
By: Invest India
By: Invest India
By: Invest India
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