Advantage India
Robust
Demand
* Factors contributing to the sharp growth in demand for processed foods include increasing urbanization, increasing disposable incomes, changing spending patterns/ priorities, the emergence of nuclear families, and the growing need for convenience foods in dual-income nuclear families.
* The demand for organic products in the Indian market is growing and is anticipated to rise with a CAGR of 25.25% between 2022-27.
* India’s fruit exports have surged by 47.5% over the past five years. India currently exports fresh fruits to over 85 countries. In the period from FY20 to FY24, the value of India’s fresh fruit exports grew by 47% from Rs. 5,716 crore (US$ 669 million) to Rs. 8,431 crore (US$ 986 million), and the quantity increased by 69% from 7.55 lakh metric ton (MT) to 12.76 lakh MT.
Attractive
Opportunities
* India’s seaweed farming sector, currently valued at Rs. 200 crore (US$ 23.02 million) is projected to grow to Rs. 3,277 crore (US$ 377.19 million) over the next decade, potentially benefiting 1.6 million people, according to a report by Primus Partners.
* India’s alcoholic beverages industry holds significant untapped potential in global markets, with products such as gin, beer, wine, and rum increasingly gaining international recognition, according to the Agricultural and Processed Food Products Export Development Authority (APEDA). India aims to boost alcoholic beverage exports from the current Rs. 3,162.21 crore (US$ 370.5 million) to Rs. 8,535 crore (US$ 1 billion) by 2030.
Policy
Support
* Online, Competitive, Transparent Bidding System with 1.74 crore farmers and 2.39 lakh traders put in place under the National Agriculture Market (e-NAM) Scheme.
* A new sub-scheme of PM Matsya Sampada Yojana with a targeted investment of Rs. 6,000 crore (US$ 729 million) to be launched to further enable activities of fishermen, fish vendors, and MSEs, improve value chain efficiencies and expand the market.
* The budget for Department of Agriculture and Farmers’ Welfare increased to Rs. 21,933.50 crore (US$ 2.53 billion) in 2013-14 and further advanced to Rs. 1,22,528.77 crore (US$ 14.13 billion) in 2024-25, reflecting the government’s commitment to agricultural development.
Competitive
Advantage
* India has access to several natural resources that provides it a competitive advantage in the food processing sector. Due to its diverse agro-climatic conditions, it has a wide-ranging and large raw material base suitable for food processing industries.
* In India, agriculture is the primary source of livelihood for ~55% of the population.
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