Snapshot
Food processing - 'A Sunrise sector'
India's food ecosystem offers enormous investment opportunities with stimulating growth in the food retail sector encouraging economic policies, and attractive fiscal incentives. Through the Ministry of Food Processing Industries (MoFPI), Government of India is taking all necessary measures to boost investments in the food processing industry in India. Some of the initiatives include:
- Pradhan Mantri Kisan Sampada Yojana (PMKSY) aims at developing modern food processing infrastructure. PMKSY has been envisaged as a comprehensive package which will result in creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet.
- Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme (PMFME) aims to enhance existing individual micro-enterprises in the unorganized segment of the food processing industry.
- Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) aims to boost domestic manufacturing, increase exports, while supporting food manufacturing entities with stipulated Sales and willing to make investment for expansion of processing capacity and branding abroad to incentivize emergence of strong Indian brands. The scheme is EoI bases.
India’s agricultural and processed food products exports were up by 13% to $19.69 Bn in nine months of the current fiscal (2022-23) compared to the same period last year.
Agro Processing Cluster Projects approved by MoFPI
Mega Food Park Projects approved by MoFPI.
- The share of processed food exports in agri-exports has increased substantially from 13.7% in 2014-15 to 25.6% in 2022-23.
- The total FDI received in the food processing sector from Apr 2000 till Mar 2024 was $12.58 Bn which is 1.85% of the total FDI Equity inflow.
- By 2025 the Indian Food Processing market is estimated to reach $535 Bn and growing at a compound annual growth rate of 15.2%. Tier-II and Tier-III cities could mirror the trend visible in metropolitan areas, by consuming more processed food in the coming years.
- India’s consumer spending to grow to $6 Tn by 2030.
- India's export of agricultural and processed food products rose close to $51 Bn in 2022-23. Major exporting countries include USA, Bangladesh, UAE, Vietnam, among others.
- India has emerged as world leader in the production of a variety of fruits like mango, banana, guava, papaya, sapota, pomegranate, Lime & aonla and is the second largest producer of fruits and vegetables.
- In FY 2023-24, India exported 11.1 Mn Tonnes of non-basmati rice and 5.2 Mn Tonnes of basmati rice.
- Government aims to make India the Global Hub for 'Shree Anna' (Millets)
100% FDI is permitted under the automatic route in food processing industries in India.
100% FDI is allowed through the government approval route for trading, including through e-commerce in respect of food products manufactured or produced in India.
For further details, please refer FDI Policy
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Share of GVA of Agriculture & Allied Sector in Total Economy (at current prices) (2022-23)
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Share in total employment
- $ Bn
Worth of agricultural and processed food products exported in 2022-23
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Cropping intensity
Explore Related Sub Sectors
World's largest producer of Spices, Milk and Pulses
World’s second largest producer of tea and sugarcane
World's second largest producer of wheat, fruits, and vegetables
- Industry Scenario
- FOREIGN INVESTMENT
- INDUSTRY TRENDS
- POLICIES & SCHEMES
Industry Scenario
India’s food processing sector is one of the largest in the world and its output is expected to reach $535 Bn by 2025-26.
The Food Processing sector in India has a quintessential 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 encourage investments across the value chain. The food processing industry has a share of 12.22% (at 3-digit of NIC classification) in the employment generated in all Registered Factory sector engaging approximately 2.03 Mn people. Unregistered food processing sector supports employment to 5.1 Mn workers as per the NSSO 73rd Round report 2015-16 and constituted 14.18% of employment in the unregistered manufacturing sector. Major sectors constituting the food processing industry in India are processed fruits and vegetables, RTE/RTC, mozzarella cheese, processed marine products, edible oils, beverages, and dairy products.
Under PMKSY the projects sanctioned under various schemes as on date (30.09.2023) include, 41 Mega Food Parks, 371 Cold Chain projects, 68 Agro-Processing Clusters, 474 proposals under Creation/Expansion of Food Processing & Preservation Capacities (CEFPPC), 61 Creation of Backward and Forward Linkages Projects, 46 Operation Green projects, 186 Food Testing Laboratories projects have been approved across the country.
The key sub-segments of the Food Processing industry in India are Fruits & Vegetables, Poultry & Meat processing, Fisheries, Food retail, dairy industry, etc.
Key facts:
- Total horticulture production in the year 2022-23 is estimated to be 355.48 MT, an increase of about 8.30 MT (2.39%) as compared to the year 2021-22 (final)
- India ranks 1st in Milk production and the total milk production in the country during 2022-23 is 230.58 MT. In the year 2022-23, the milk production has registered an annual growth rate of 3.83%
- In 2022-23, the total egg production in the country is 138.38 Bn which have increased by 6.77% as compared to the previous year
- The fish production in 2022-23 is was recorded at 17.54 MT .
- Production of plantation crops is estimated to increase from 15.76 MT in 2021-22 to 16.84 MT in 2022-23, which is an increase of about 6.80%
- India achieved an all-time high exports of seafood both in terms of volume and value by shipping 1.73 Mn MT of seafood worth $8.09 Bn during FY 2022-23
- The export of other cereals recorded a growth of 13.64% in nine months of the current fiscal
- India export of other Cereals (Excluding Rice, Wheat Maize and Millet) to the world was worth $3.39 Mn in FY 2022-23 as per APEDA
- The total meat production in the country is 9.77 MT for the year 2022-23 with an annual growth rate of 5.13%. The total five major meat producing States are Uttar Pradesh (12.20%), West Bengal (11.93%), Maharashtra (11.50%), Andhra Pradesh (11.20%), and Telangana (11.06%)
- The estimated production of rice is 135.75 MT, Wheat is 110.55 MT, and Nutri/Coarse cereals is 57.31 MT for the year 2022-23
- India’s exports of foodgrains have registered a steady growth in last few years which is reflected in the increase in India’s share in world foodgrain exports from 3.38% in 2010 to 7.79% in 2022 as per UN COMTRADE statistics. Top agricultural products exported from India include Marine products, rice, spices, amongst others.
- Non-Basmati Rice has emerged as India’s top export item among the many agricultural and processed food product exports under APEDA basket, with the export of $4,663 Mn in nine months of 2022-23
GROWTH DRIVERS
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
One District, One Product (ODOP)
Under ODOP scheme, 713 districts have been identified across the country
Production Linked Incentive (PLI) Scheme
The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval to introduce the Production-Linked Incentive (PLI) Scheme in Food Products for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat. Under the PLI Scheme for Food Processing Industry, a total of 158 applications have been approved under different categories including 22 applicants (out of 30 selected applicants) selected to participate under PLI Scheme for Millet-based products are MSMEs. The implementation of PLI scheme is likely to facilitate expansion of food processing capacity by nearly INR 30,000 crore and create additional direct and indirect employment opportunities for about 2.5 Lakh persons by the year 2026-27. As per the data being reported by the PLIS beneficiaries, investment of about INR 7,099 Cr has been made under the Scheme.
INR 10,900 Cr
Scheme Outlay
Industrial Land Bank Portal
GIS - based map displaying available infrastructure for setting up business operations in the state.
Investible Projects
Investment Opportunities in Food Processing
Gallery
Latest News
Latest In Food Processing
Market Research
Invest India closely works with
Government Ministry/ Department
- Ministry of Food Processing Industries
- Department of Agriculture, Cooperation & Farmers Welfare
- Department of Fisheries
- Department of Animal Husbandry and Dairying
- Food Safety and Standards Authority of India
- Agriculture and Processed Foods Export Development Authority
- Marine Products Export Development Authority
Industry Association
- Confederation of Indian Food Trade and Industry (CIFTI)
- List of Institutions focusing on Dairy, Meat and Fisheries
- List of Institutions focusing on Horticulture Crops
- List of SAUs offering courses in Food Science & Technology & Dairy Technology
- List of State Agricultural Universities
- Institution focusing on Post Harvest Technology