Indian Food Processing Industry – An Overview
                     Indian Food Processing Industry – An Overview
B.K Vijay 
Writes for HIOC about Hyderabad City 
and Bus pass price in hyderabad and 
other topics related to Hyderabad. 
The food industry in India is one of the biggest in the world and it offers 
excellent opportunities for investments along with great returns. Experts 
strongly suggest that the Indian food processing industry is destined to 
experience a huge growth within the next few years. This means that India 
is perfectly poised to contribute greatly to the world food trade each and 
every year. 
The food sector in India has over the years evolved into a major high growth 
and super high yield market because of its excellent scope for value 
addition. This has naturally encouraged a lot of investors to come up and 
contribute to the further growth of the food processing industry in India. 
The attractive fiscal incentives which are further backed by lucrative 
economic policies have helped in stimulating strong growth within the food 
processing sector.
Statistics reveal that the food and grocery sector in India is definitely the 
6th largest all across the globe. In fact, the food and grocery market 
constitutes a whopping 65% of overall retail market in the Indian 
subcontinent.
The great thing about the food ecosystem in India is that it is strongly 
supported by the Indian Government which means that a number of 
favorable policies have contributed to the further growth of the food sector 
in this country. Ministry of Food Processing Industries is actually making a 
number of important efforts which can assist investors who want to be a 
part of the food industry in India. This means that a lot of proposals relating 
to foreign collaborations, joint ventures and industrial licenses have been 
sanctioned along with 100% export oriented units.
Being one of the largest markets for food and grocery products in the 
world, Indian food sector contributes almost 70% of sales. Indian food 
processing sector also contributes to about 32% of India’s overall food 
market. This makes the Indian food processing sector among the biggest 
industries in the country in terms of total figures of production, exports, 
consumption and the expected growth.
The food sector is responsible for 8.39% and 8.80% of total Gross Value 
Added or GVA in the spheres of agriculture and manufacturing respectively. 
This amounts to a total of 6% of the overall industrial investment and 13% 
of the country’s exports. As far as the gourmet food market of India is 
concerned, it has grown to produce a value of US$ 1.3 billion and is growing 
with a CAGR rate of 20%. It is believed that the organic food market in India 
is slated to grow thrice by the year 2020.
The growth of the Indian food processing industry has also been further 
aggravated by the advent of online food ordering apps and business. Even 
though it is a segment that is still at its beginning stages, there is a lot of 
potential in this sphere for fast expansion. Companies like Swiggy, Zomato 
and FoodPanda are helping the food chains and restaurants to make more 
sales and this has naturally led to economic boom in the food sector.
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