Food Processing Industry
USEFUL INFO
Current Sector Status
- GVA Expansion: GVA rose from Rs. 1.34 lakh crore (2014–15) to Rs. 2.24 lakh crore (2023–24).
- Export Share: Processed food exports hit US$ 10.09 billion, representing 20.4% of total agri-exports.
- Employment: Engages approximately 12.83% of the registered manufacturing workforce, making it a leading organized employer.
- FDI Inflows: Secured cumulative investments of over US$ 7.33 billion.
Growth Projections & Long-Term Targets
- 2035 Projection: Sector output is expected to scale to US$ 1,100 billion.
- 2047 Target: Expected to reach US$ 2,150 billion under the Viksit Bharat roadmap.
- Beverages Sub-Segment: The non-alcoholic segment is projected to reach US$ 64.24 billion by 2033 (7.66% CAGR).
Strategic Growth Enablers
- Raw Material Advantage: India is a world leader in milk and pulses production and the second-largest producer of rice, fruits and vegetables.
- Government Support Schemes: Backed by the Pradhan Mantri Kisan SAMPADA Yojana and the Production Linked Incentive Scheme (PLISFPI).
- Infrastructure Upgrades: Focus on cold chains, food testing laboratories and irradiation units.
Future Growth and Potential
The Indian food processing sector offers a promising growth journey ahead and presents several opportunities. The sector is recognised as a key priority industry under the “Make in India” initiative. The Ministry of Food Processing Industries has undertaken initiatives to enhance infrastructure and foster food processing industries to stimulate investment.
The Indian government has sought to involve farmers, processors, distributors and retailers in stronger supply chains. Linking farmers to processing and marketing, with nearby grading and storage facilities, can enhance the value of their products.
Investment prospects total Rs. 225.79 billion (US$ 2.36 billion) across 31 projects under Common Infrastructure for Industrial Parks. These include specialised processing units, effluent treatment plants, testing laboratories, common warehouses and logistics support. Foreign investment opportunities are supported by favourable policies, a large consumer market and government initiatives focused on competitiveness and sustainability.