Advantage India
Robust
Demand
*India is the fourth largest economy in the world and expected to be the fastest-growing economy among major G20 countries, with GDP growth estimated to be around 6.9% in FY26.
*Indian food processing market size reached Rs. 30,49,800 crore (US$ 354.5 billion) in 2024 and is expected to grow to Rs. 4,584,415 crore (US$ 535 billion) by the end of FY26.
*As of 2024, it contributes around 8.80% and 8.39% of Gross Value Added (GVA) in Manufacturing and Agriculture respectively, 13% of India's exports and 6% of total industrial investment.
Competitive
Advantage
*India is the largest producer of milk and spices and one of the leading producers of fruits and vegetables, poultry, and meat.
*India has access to several natural resources that provides it with a competitive advantage in the food processing sector.
Government
support
*APEDA has launched the Bharat's Hub for Agritech, Resilience, Advancement and Incubation for Export Enablement (BHARATI) initiative to empower 100 agri-food and agri-tech startups, foster innovation, improve export readiness and help India achieve Rs. 4,28,450 crore (US$ 50 billion) in agri-food exports of its scheduled products by 2030.
*The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) offers Rs. 10,900 crore (US$ 1.3 billion) to incentivize food manufacturing, promote innovative SME products, and boost Indian brands globally.
Opportunities
*According to the Viksit Bharat@2047 report, India's food processing sector will grow significantly, reaching US$ 1,100 billion by FY35, US$ 1,500 billion by FY40, US$ 1,900 billion by FY45, and US$ 2,150 billion by FY47.
*From April 2000 to June 2025, the food processing industry received Rs. 1,15,596 crore (US$ 13.4 billion) FDI.
*The growing consumption of food is expected to reach US$ 1.2 trillion by CY26, owing to urbanization and changing consumption patterns.
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