SECTOR OVERVIEW

The Indian food processing industry is divided into agri-products, milk and milk products, and meat, poultry and marine products. In agri-products, India is the largest producer of several fruits, it is also the second-largest producer of vegetables, rice, wheat, sugar cotton, milk and milk products.

UNIDO has identified over 60 food processing clusters in India with largest concentration in Maharashtra and Gujarat followed by Andhra Pradesh, Punjab and Orissa.

The Indian food processing industry accounts for 32% of the country’s total food market. Estimated to be worth USD 121 billion, it is one of the largest industries in India, and is ranked fifth in terms of production, consumption and exports. The industry employs 13 million people directly and 35 million people indirectly.

POLICY & PROMOTION

The Government of India allows 100% FDI under the automatic route in the food processing sector, in agri-products, milk and milk products, and marine and meat products, except Proposals that require an industrial license and cases where foreign investment exceeds 24% equity and foreign collaborator has a previous venture or tie-up in India as on January 12, 2005.

THE INDIAN OPPORTUNITY

Higher Priority by Government.
Next Frontier of Economic Growth.
Rising corporate sector interest.
Rising International Interest.

India is the world's second largest producer of food next to China and has the potential for the development of a large Food Processing Sector.

The Indian food processing industry is divided into agri-products, milk and milk products, and meat, poultry and marine products. In agri-products, India is the largest producer of several fruits, it is also the second-largest producer of vegetables, rice, wheat, sugar cotton, milk and milk products.

Organised Retailing has emerged as the sunrise in India. It ensures an efficient farm-to-fridge supply chain. With the rapid growth in the Indian Food sector, the food retail sector is also growing at a hefty 9 percent.

UNIDO has identified over 60 food processing clusters in India with largest concentration in Maharashtra and Gujarat followed by Andhra Pradesh, Punjab and Orissa.