According to a report published by market research firm RNCOS in April 2010, titled ‘Indian Food and Drinks Market: Emerging Opportunities’ the Indian food and beverages market is expanding rapidly and is projected to grow at a compound annual growth rate (CAGR) of about 7.5 per cent during 2009-13 and would touch US$ 330 billion by 2013.
Exports of agricultural products from India are expected to cross around US$ 22 billion mark by 2014 and account for 5 per cent of the world’s agriculture exports, according to the Agricultural and Processed Food Products Export Development Authority (APEDA).
Exports of floriculture, fresh fruits and vegetables, processed fruits and vegetables, animal products, other processed foods and cereals rose to US$ 7891.8 million in 2008-09 from US$ 7877.07 million in 2007-08, according to DGCIS annual data published by APEDA.
Moreover, India exported schedule products, floriculture and seeds, fruits and vegetables, processed fruits and vegetables, livestock products, other processed foods and cereals worth US$ 6.53 billion between April-February 2009-2010, according to APEDA.
India exported 502,750 million tonnes (MT) of spices valued at US$ 1.25 billion in 2009-10, according to the estimates by Spices Board of India.
Moreover, India enjoys a 48 per cent in volume and 44 per cent in value share in the world spice trade, as per the Spices Board of India.
In order to further grow the food processing industry, the Ministry of Food Processing Industries (MOFPI) has formulated a Vision 2015 action plan under which specific targets have been set. This includes trebling the size of the food processing industry, raising the level of processing of perishables from 6 per cent to 20 per cent, increasing value addition from 20 per cent to 35 per cent, and enhancing India’s share in global food trade from 1.5 per cent to 3 per cent.
According to Mr Subodh Kant Sahai, Union Minister for Food Processing Industries, the Central Government is envisaging an investment of US$ 21.9 billion in the food processing industry over the next five years, a major chunk of which it plans to attract from the private sector and financial institutions.
Moreover, the food processing sector has grown from 6 per cent a year ago to 14.9 per cent in 2010, according to Mr Sahai. The Minister further said that at present the country was processing 10 per cent of the total food produce and aimed to enhance it to 20 per cent by 2015. Exports are also targetted to increase from 1.5 per cent to 3 per cent.
Furthermore according to Mr Sahai, foreign direct investment (FDI) in food processing is likely to rise 27 per cent to US$ 264.6 million in 2010-11. "This year, FDI is expected to cross Rs 1,000 crore and touch Rs 1,200 crore," Sahai said on the sidelines of the second national conference of the National Meat and Poultry Processing Board (NMPPB) in New Delhi in May 2010.
The cumulative FDI received by the food processing industry from April 2000-March 2010 stood at US$ 1,042.62 million, according to data released by the Department of Industrial Policy and Promotion.