Food Industry
India’s share in global sugar production in 2022 is forecast at 15 per cent at around 32 million tonnes.

Indian Food Processing Industry Analysis

Latest update: January, 2016

Exporters gaining from rising global demand and location advantages

• Growth in food product exports has been aided by: - Improvements in product and packaging quality - Greater private sector participation

• India has a location advantage:;It is geographically close to key export destinations (Middle East, South East Asia)

•USA is the top destination for processed products from India

•Vietnam, Saudi Arabia, Iran, and UAE are the other major destinations for Indian exports

Last Updated: January, 2016

India’s food grain production reached 251.12 million tonnes (MT) in FY15. India is the world’s second–largest producer of fruits and vegetables. The country produced 91.3 MT of fruits, 163.39 MT of vegetables during 2014-15. India enjoys a similar stature in the production of marine products, and meat and poultry. India is the single largest producer of milk in the world, with the production estimated at 137.7 MT.

India has the largest livestock population across the globe which is equal to 512 million, including 119 million milch (in-milk and dry) animals, 135 million goats and 65 million sheep. The segment contributes about 25 per cent to the country’s farm Gross Domestic Product (GDP).

Given the above context, it is easy to understand that the food processing industry is one of the largest industries in India. The country’s food processing industry ranks fifth in terms of production, consumption and exports. 

Strategic geographic location and proximity to food importing nations benefit India in terms of exporting processed foods. During FY11–15, India's exports of processed food and related products (inclusive of animal products) increased at a CAGR of 23.3 per cent to US$ 21.5 billion. Main export destinations for food products have been the Middle East and Southeast Asia. 

Government's policies are expected to help turn the Indian food processing industry into a global outsourcing hub. Between April 2000 and May 2015, FDI in agriculture and food processing in India stood at US$ 11.51 billion.

Sectoral Presentation (January, 2016)

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Investment in the Indian food processing sector is estimated at US$ 25 billion, employing over 10 million people. The sector grew at 20 per cent per a...

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