Overview:
On a worldwide scale, India is the largest country in terms of food production, processing, supply, and consumption. India's food processing industry is primed for rapid expansion and will contribute significantly to the country's economic prosperity. Due to value addition and developing technologies, India's food processing sector has become a highly profitable sector. India's food market is ranked 6th in the world, with 70% of sales and 5th in production, consumption, and export. India exports 13% of its overall manufacturing output and 6% of its industrial investment. Manufacturing and agriculture contribute 8.80 percent and 8.39 percent, respectively, to India's Gross Value Added.
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Current Scenario:
With the support of the Ministry of Food Processing Industries, the Government of India helps the development and growth of the food processing sector (MOFPI). It is addressing these issues through a variety of programs and subsidies. It also works on foreign investment collaborations and food processing plants that are 100 percent export-oriented. By 2020, India's organic food market would have grown threefold (expected). Between April 2000 and March 2017, the Indian food processing sector attracted roughly US$ 7.54 billion in foreign direct investment (FDI).
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According to a survey by the Confederation of Indian Industry (CII), India's food processing sector is predicted to attract US$ 33 billion in foreign investment over the next ten years, while simultaneously creating jobs. Companies like and, a global e-commerce behemoth, plan to invest US$ 515 million in the food retailing sector over the next five years. The current study focuses on the existing situation and foreign investment in India's food processing industry.
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India's present food processing sector is projected to be worth USD 130 billion, and it is likely to attract significant local and global investment. The following are some of the important variables that are anticipated to boost demand for processed foods and, as a result, the food processing sector in the next years:
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Statistics about the Market:
· The food processing business in India is one of the world's largest, with production anticipated to reach $535 billion by 2025-26.
· By 2024, this industry is predicted to provide 9 million employments.
· The Indian food industry is growing at an annual rate of 11%, with the food processing sector accounting for 32% of the total.
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· Between April 2014 and March 2020, India's food sector garnered $4.18 billion in foreign direct investment.
· India's annual household consumption is anticipated to quadruple by 2030, making it the world's fifth-largest consumer.
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Opportunities Ahead:
India has a population of around 1.25 billion people. The domestic market provides 1.25 billion potentials for the industry, with the increasing middle class having significant spending money.
• India produces the most milk, ghee, ginger, bananas, guavas, papayas, and mangoes in the world.
• India, along with China, is one of the world's fastest-expanding economies. The World Bank's recent quantum leap in the ease of doing business ranking (from 130 to 100) highlights the country's favorable business climate, which is likely to attract foreign investment in this area.
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In addition, India is the world's second-largest producer of rice, wheat, and a variety of other vegetables and fruits. There would be more potential for the sector to expand if the surplus output of grains, fruits, vegetables, milk, fish, meat and poultry, and other items is processed and sold both inside and beyond the country.
Food habits are fast changing as a result of increased urbanization, with a shift toward value-added goods. The shift is reinforced by the fact that nearly 65 percent of India's population is under the age of 35, with a preference for processed foods.
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