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 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.

  • By 2020, Indian Food and Retail market is projected to touch $ 828.92 bn
  • By 2020, the Indian Dairy industry is expected to double to $ 140 bn
  • By 2024, the Food Processing industry will potentially attract $ 33 bn investments and generate employment for 9 mn people
  • 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

  • 10.7 %

    Share in India's exports

  • 142 %

    Cropping intensity

Business opportunities in food processing in india

World's largest producer, consumer & exporter of spices

Food processing business in india

World's largest processor, producer and consumer of cashew nuts

food business in india

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 1.85 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:

  • 311.71 mn tonnes of horticulture crop production in 2017-18
  • Milk production of 176.3 mn tonnes during 2017-18 with per capita availability of milk at a level of 375 grams per day in 2017-18
  • Egg production of around 95.2 bn during 2017-18
  • Total fish production was 12.6 mn tonnes during 2017-18
  • Food Retail market is majorly dominated by Food Grocery (growing at CAGR 25%) and Food Services (growing at CAGR 15%) segments.

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

    India is the fastest growing largest economy in the world
  • Conducive policies

    Proactive government policies with attractive fiscal incentives
  • Open

    Agriculture Export Policy

    To promote exports, increase investments and provide an inst…

  • Open

    Creation / Expansion of Food Processing…

    Creation of processing and preservation capacities and moder…

  • Open

    Creation of Infrastructure for Agro Proc…

    To provide integrated and complete preservation infrastructu…

  • 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

    List of designated Food Parks

    Ministry of Food Processing Industries (MoFPI) has notified…

  • Open

    Mega Food Park Scheme

    The primary objective of the Mega Food Park Scheme (MFPS) is…

  • Open


    The Government of India encourages farmers in taking up proj…

  • Open

    Nivesh Badhu

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

  • Open

    Operation Greens

    To strengthen Tomato, Onion, and Potato (TOP) production clu…

  • 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…

Investible Projects

Investment Opportunities in Food Processing

  • Projects


  • Opportunity

    $496.27 mn

  • Promoters


  • District


  • Private Projects


  • Govt. Projects



$76.21 mn

Sugar Project [Kannauj]

State (s) Uttar Pradesh

$74.09 mn

Sehjo Majra - Rattipur Food Processing Project

State (s) Punjab

$46.57 mn

Sugar Project [Shirur]

State (s) Karnataka

$28.23 mn

Sugar Project [Belewadi Kalamma]

State (s) Maharashtra

Major Investors

Data on Map

  • Mega Food Parks in India
  • Food processing industry in India

Latest in Food Processing


Asked Questions

  • 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.

  • For Mega food park, does the land needs to be changed from Agricultural to Industrial?

    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.

  • What is FSSA, 2006 and why this Act is needed?

    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.

  • What is minimum land requirement for setting-up Mega Food Park?

    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.

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