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FOOD PROCESSING

Investment in Food Industries

The food sector in India has successfully established its presence. India's food ecosystem offers enormous investment opportunities with stimulating growth in the food retail sector, favorable economic policies, and attractive fiscal incentives. India is the world's sixth-largest food and grocery market. In India, the food and grocery retail business accounts for over 65 percent of the total retail market.

Through the Ministry of Food Processing Industries (MoFPI), the Government of India is also taking all necessary steps to boost investments in the food processing industry. The government has approved 41 food parks under the Mega Food Parks Scheme, with 22 of them open as of April 1, 2021.

By 2025, India's food processing business will be worth more than half a trillion dollars. By 2030, India's annual household consumption would have tripled, making it the world's fifth-largest consumer.

The automated method allows for 100 percent FDI in the food processing sector in India.

100% FDI in food processing is allowed through the government approval route for trading, including e-commerce regarding food products manufactured or produced in India.

20.2 %

% Share of GVA of agriculture and allied sector to total economy
11.6 %

Share in total employment
10.4 %

Share in India's exports
136 %

Cropping intensity

1

World’s largest producer, consumer & exporter of spices
2

World’s largest processor, producer and consumer of cashew nuts
3

World’s 2nd largest producer of food grains, fruits, and vegetables

India's food processing industry is one of the world's largest, with a projected production of $535 billion by 2025-26.
Food processing has a vital role in linking Indian farmers to consumers in the domestic and international markets.
The Ministry of Food Processing Industries (MoFPI) is making all efforts to encourageinvestments across the value chain.
Around 1.93 million people work in about 39,748 registered units, with a total fixed capital of $32.75 billion and a total output of approximately $158.69 billion.
The critical sub-segments of the Food Processing industry in India are Dairy, Fruits & Vegetables, Poultry & Meat processing, Fisheries, Food retail, etc.
With 114.38 billion eggs produced in 2019-20, it is ranked third in the globe.
198.4 million tonnes of milk to be produced in 2019-20.
The Retail food market is majorly dominated by Food Grocery (growing at CAGR 25%) and Food Services (growing at CAGR 15%).

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

May 21- The government is seeking expressions of interest by June 17 for an INR 11k crore food processing PLI scheme.
April 21- The government of Odisha has approved investment proposals worth over INR 2,570 crore in the metal, cement, chemical, plastic, food processing, and manufacturing sectors, which will create 2,755 jobs.
February 21- Hatsun Agro, a dairy product manufacturer, has started production at its new facility in Solapur, Maharashtra. It's a wholly automated dairy plant that costs INR 130 crore to build. It has a daily capacity of 6 lakh liters of milk and will produce milk, yogurt, curd, and other dairy products.
January 21- Amul plans to invest INR 5,000 crore in milk processing facilities over the next five years.