The Food processing sector in India is an important segment of the economy, constituting a share of around 9-10 per cent of gross domestic product (GDP) in agriculture and manufacturing sector. Currently growing at more than 10 per cent per annum, it is expected to touch US$ 194 billion by 2015 from a value of US$ 121 billion in 2012, according to the Indian Council of Agricultural Research (ICAR).
Packaged food industry is the fifth largest sector in India. The industry is currently pegged at US$ 39.7 billion in India and is expected to reach US$ 65.41 billion by 2020, owing to the rise in middle class income, changing urban lifestyle and modern retail trade. Residents in urban areas are the largest consumers of processed food, consuming 78 per cent of all packaged food .
Indian agricultural and processed food exports during April-December 2013 stood at US$ 16,578.91 million as compared to US$ 15,206.22 million during the same period last year, according to data released by the Agricultural and Processed Food Products Export Development Authority (APEDA). The share of food processing export in total exports from India is around 12 per cent.
Food processing industries in India attracted foreign direct investments (FDI) worth US$ 5,360.89 million during the period April 2000-January 2014, according to the latest data published by Department of Industrial Policy and Promotion (DIPP).