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Indian Food Processing Industry Analysis

August, 2013

India holds the second largest arable land in the world. With 20 agri-climatic regions, all 15 major climates in the world exist in India. The country also possesses 46 of the 60 soil types in the world.

India is the largest producer of pulses, milk, tea, cashew and mangoes, buffalo meat; and the second largest producer of tea, wheat, sugarcane and rice. Demand growth for processed food has been rising with growing disposable income, urbanisation, a young population and rise in the number of nuclear families. Domestic food spending is expected to increase from US$ 181 billion in 2009 to US$ 318 billion in 2020.

The Government of India (GOI) expects US$ 21.9 billion of investments in food processing infrastructure by 2015 and has also launched Infrastructure Development scheme to increase investments in food processing infrastructure. Investments, including foreign direct investments (FDI), will rise with strengthening demand and supply fundamentals.

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