Last Updated: February 24, 2015
Global CEO, Domino's Pizza Inc
Updated: December, 2014
SECTORAL REPORT | October, 2014
Accounting for about 32 per cent of the country's total food market, the food processing industry is one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth. The total food production in India is likely to double in the next 10 years with the country's domestic food market estimated to reach US$ 258 billion by 2015.
The food processing industry forms an important segment of the Indian economy in terms of contribution to GDP, employment and investment, and is a major driver in the country's growth in the near future. This industry contributes as much as 9-10 per cent of GDP in agriculture and manufacturing sector, according to Mr J P Meena, Additional Secretary, Ministry of Food Processing Industries (GOI).
The Indian food industry stood around Rs 247,680 crore (US$ 39.03 billion) in 2013 and is expected to grow at a rate of 11 per cent to touch Rs 408,040 crore (US$ 64.31 billion) by 2018.
Indian agricultural and processed food exports during April-May 2014 stood at US$ 3,813.63 million, according to data released by the Agricultural and Processed Food Products Export Development Authority (APEDA).
India has 85,000 bakery units, of which 75,000 operate in the unorganised sector, garnering a 65 per cent market share. The per capita consumption of bakery products, stands around 1-2kg per annum.
The Indian dairy industry has grown considerably post the white revolution and reports suggest that with current growth rate of approximately 3 per cent-4 per cent, it is thought to grow to 185 million tonne and become a US$ 24 billion organised industry by 2020 and US$ 140 billion overall including the unorganised sector.
According to the data provided by the Department of Industrial Policies and Promotion (DIPP), food processing sector in India has received around US$ 6,076.58 million worth foreign investments in the period April 2000—September 2014. Some of the major investments in this sector in the recent past are:
The government has taken significant initiatives to improve the food processing sector in India. Some of the major ones are:
In the upcoming years, the government will explore new scheme for infrastructure and cluster development of perishables. It would also facilitate solutions to industries for the issues related to FSSAI.
Furthermore, the Vision Document-2015 shall help to improve the state of the food industry in India. This document was prepared by the Food Processing Ministry, which envisaged trebling the size of investment in the processed food sector by increasing the level of processing of perishables from 6 per cent to 20 per cent, value addition from 20 per cent to 35 per cent and share in global food trade from 1.5 per cent to 3 per cent by 2015.
Exchange rate used: INR 1 = US$ 0.0157 as on December 23, 2014
References:Ministry of Food Processing Industries (MoFPI), Agricultural and Processed Food Products Export Development Authority (APEDA), Media reports and Press Releases, Department of Industrial Policy and Promotion (DIPP), Press Information Bureau (PIB), Confederation of Indian Industries (CII)
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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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