Advantage India
Growing
Demand
* India's food processing sector's market size is estimated to more than double from Rs. 2,641,121 crore (US$ 307 billion) in 2023 to Rs. 6,022,100 crore (US$ 700 billion) in 2030 driven by growing demand for processed products, according to PHD Chamber of Commerce and Industry (PHDCCI).
* The food processing sector has grown substantially, averaging an annual growth rate of around 7.3%, during 2015-2022. The sector has contributed 10.54% of the Gross Value Added (GVA) in Manufacturing and 11.57% of GVA in Agriculture sector in 2020-21.
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.
* Due to its diverse agro-climatic conditions, it has a wide-ranging and large raw material base suitable for food processing industries.
Government
support
* The Ministry of Food Processing Industries (MoFPI) has implemented schemes like Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), PM Formalisation of Micro food processing Enterprises (PMFME) Scheme and Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) offering financial, technical, and business aids to establish food processing enterprises.
* Food processing units qualify for complete profit exemption in the first five years and 100% FDI is permitted in the food processing sector.
Opportunities
* The growing consumption of food is expected to reach US$ 1.2 trillion by 2025-26, owing to urbanization and changing consumption patterns.
* 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 March 2025, the food processing industry received Rs. 112,943 crore (US$ 13.1 billion) FDI.
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