 The food processing sector is one of the largest sectors in India in terms of production, growth, consumption, and export. India's food processing sector covers fruit and vegetables, spices, meat and poultry, milk and milk products, alcoholic beverages, fisheries, plantations, grain processing, and other consumer product groups like confectionery, chocolates and cocoa products, soya-based products, mineral water, high protein foods, etc. Since liberalization in August 1991, proposals for projects have been proposed in various segments of the food and agro-processing industry. Besides this, Govt. has also approved proposals for joint ventures, foreign collaboration, industrial licenses and 100% export-oriented units envisaging an investment. The foreign direct investment in food processing sector in 2023-24 is estimated to be 5037 crores/608 USD Million.
India's exports of Processed Food was Rs. 63,822.27 Crores/ 7,701.66 USD Millions in 2023-24, which including the share of products like Mango Pulp (Rs. 624.29 Crores/ 75.35 USD Millions), Processed Vegetables (Rs. 6523.47Crores/ 787.28 USD Millions), Cucumber and Gherkins (Prepd. & Presvd.) (Rs. 2127.07Crores/ 256.58 USD Millions), Processed Fruits, Juices & Nuts (Rs. 5659.47 Crores/ 682.58 USD Millions), Pulses (Rs. 5689.40 Crores/ 686.93 USD Millions), Groundnuts (Rs. 7135.35 Crores/ 860.73USD Millions), Guargum (Rs. 4489.40 Crores/ 541.65 USD Millions), Jaggery & Confectionary (Rs. 3570.77 Crores/ 430.88 USD Millions), Cocoa Products (Rs. 1521.94 Crores/ 183.54 USD Millions), Cereal Preparations (Rs. 6976.25 Crores/ 841.79 USD Millions), Alcoholic Beverages (Rs. 3107.50 Crores/ 375.09 USD Millions), Miscellaneous Preparations (Rs. 10989.97 Crores/ 1326.24 USD Millions), Milled Products (Rs. 1432.64 Crores/ 172.69 USD Millions), Prepared Animal Feeder (Rs. 3703.98 Crores/ 447.40 USD Millions) and Other Oil Cake/Solid Residues (Rs. 270.77 Crores/ 32.93 USD Millions).
The Indian food processing industry is primarily export oriented. India's geographical situation gives it the unique advantage of connectivity to Europe, the Middle East, Japan, Singapore, Thailand, Malaysia and Korea. One such example indicating India's location advantage is the value of trade in agriculture and processed food between India and the Gulf region.
The Indian government has highlighted the food processing sector under the “Make in India” initiative, a Government of India program designed to facilitate investment, foster innovation, enhance skill development, protect intellectual property, and build a good manufacturing infrastructure. The food processing sector has emerged as an important segment of the Indian economy in terms of its contribution to the gross domestic product, exports, investment, and employment.
Retail (food & grocery retail market), one of the largest sectors in the global economy, is going through a transition phase in India. It is expected to grow at a Compound Annual Growth Rate (CAGR) of 3.0% from 2022 to 2030. One of the prime factors for non-competitiveness of the food processing industry is because of the cost and quality of marketing channels. Globally more than 72% of food sales occur through superstores. India presents a huge opportunity and is all set for a big retail revolution. India is the least saturated of global markets with small, organized retail and the least competitive of all global markets. |
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