The Indian food processing industry accounts for 32 per cent of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth. It contributes around 8.80 and 8.39 per cent of Gross Value Added (GVA) in Manufacturing and Agriculture respectively, 13 per cent of India’s exports and six per cent of total industrial investment. The Indian Food Processing industry engages approximately 1.77 mn people in around 39,319 registered units with fixed capital of $ 29.2 bn and aggregate output of around $ 144.6 bn.
The Government of India through the Ministry of Food Processing Industries (MoFPI) is also taking all 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. 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.
• 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 2030, Indian annual household consumption to treble, making India, the 5th largest consumer.
The Indian Processed food market is expected to grow to $ 543 bn by 2020 from $ 322 bn in 2016, at a CAGR of 14.6%.