Scope and significance of Food processing in India


  • The Indian food industry is poised for huge growth, increasing its contribution to world food trade every year.
    • In India, the food sector has emerged as a high-growth and high-profit sector due to its immense potential for value addition, particularly within the food processing industry



  • Market Size
    • The Indian food and grocery market is the world’s sixth largest, with retail contributing 70 per cent of the sales.
    • The Indian food processing industry accounts for 32% of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth.
    • 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.
    • The Indian gourmet food market is currently valued at US$ 1.3 billion and is growing at a Compound Annual Growth Rate (CAGR) of 20 per cent


  • The food processing Industry is significant in India, for the following reasons:
    • Enhance farmer’s income by better utilization and value addition of agricultural produce
    • Minimize wastage at all stages in the food processing chain by the development of infrastructure for storage, transportation and processing of agro-food produce
    • Introduce of modern technology into the food processing industries from both domestic and external sources;
    • Encouraging R&D in food processing for product and process development and improved packaging
    • Provide policy support, and support for creation of Infrastructure, capacity expansion/ Upgradation and other supportive measures form the growth of this sectors
    • Promote export of processed food products
    • Generate Employment : It provides direct and indirect employment opportunities, because it acts as a bridge between Agriculture and Manufacturing
    • Reduce malnutrition: Processed foods when fortified with vitamins and minerals can reduce the nutritional gap in the population
    • Crop-diversification: Food processing will require different types of inputs thus creating an incentive for the farmer to grow and diversify crops