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  • Food Processing Industry in India - Rising And Ripening
    By: Admin | In: Business Trends | Last Updated: 2016-02-29

    Food Processing Industry in India


    Without any doubt, we can call India synonymous to Food. ‘Sarso ka Saag from Punjab’, ‘Dilli’s famous Chatpati Chat’, ‘Sweet Sandesh from Bengal’ or ‘Vada Pao from Mumbai stalls’; each alcove of this country has concocted the unique flavors in their cuisines, and each household’s kitchen has invented thousand processes to keep the food fresh, healthy and tasty. Not just that, the India’s love for food & feast is metamorphosed into a potent food processing industry making the country 2nd largest food producer next to China. Besides, it is poised to grow at the rate of 11% to touch US $64.31 billion till 2018 by increasing its contribution to the World Food Trade.


    To tell you specifically,
    GDP, Employment, and Investment’ resolves to create a new trilogy of growth contributed by the Indian Food Processing Industry.



    • Employment Generation’ for 9 million persons a day is reported to happen at every level from the farmers, middle-income groups, to the higher levels of society. Moreover, it’ll also enhance the incomes of farmers by creating a larger demand for agricultural raw materials, and diversifying and commercializing the agriculture.

    • Investment’ or ‘Foreign Direct Investment’ is estimated to go up to the US $33 billion investment in the next 10 years.

    Now, let’s have a peek of the major drivers for the rising and ripening of the Indian Food and Processing Industry:


    #1 Indian Brands Traveling Abroad


    • The Indian Food Brands and Fast Moving Consumer Goods (FMCG) are quickly occupying the top shelves of the foreign retail chains, especially in US and Europe.
    • The Government of India has approved the 2 dairy companies namely, ‘Schreiber Dynamix Dairies’ and ‘Parag Milk Foods’ to export their milk products to Russian territories after gaining the sanction of their authorities.
    • The Spice Board of India is aiming to export around 30 of the selective spices, and value added products under the brand name of ‘Spices India’ and ‘Flavourit’ by launching premium retail outlets worldwide by associating with the private investors.

    Top Globally Recognized Indian Food Brands: Amul India, Bikanervala Foods, MTR Foods, ITC’s Kitchen of India, Cobra Beer


    #2 Foreign Brands Joining The Fray


    • The Indian Food Market of $330 billion is anticipated to sprawl to $900 billion, and the market for processed foods will expand to $300 billion by 2020, thereby projecting India to whiz ahead from 12th place to the 5th place by 2025.
    • The flattering transformation of Indian population’s lifestyle, attitudes, awareness, income levels, and affluence is also resulting in the increased desire for branded, packaged, and ready-to-eat foods.
    • Seeing the figures, as well as high potential in the Indian market in terms of large agricultural resource base, abundant livestock, and cost competitiveness, the global players in the food processing industry are salivating to make their mark here.

    Top Foreign Food Brands That Have Become A Household Name: Mc Donald’s, Pizza Hut, KFC, Starbucks, Pepsi, Nestle, Del Monte


    More brands are on the way…


    #3 Indian Government Initiating To Support The Food Sector


    • A mass of US$ 300 million was created for the National Bank for Agriculture and Rural Development (NABARD) in the 2015-16 Budget to facilitate the Indian food processing industry with a cheaper credit.
    • A relief of 4% is granted on the excise duty (originally 10%) levied on plant and machinery for packaging and processing.
    • PM Narendra Modi is steering the industry towards growth by approving the setup plan of 42 Mega Food Parks in different cities. Equipped with the common facilities like cold storage, food testing, affluent labs, packaging centers, water supply, etc. these are going to lend the industry players the superior infrastructural facilities and modernized food processing units at a reasonable price.
    • Already the cost of skilled manpower in the country is low as compared to other countries, and with the implementation of the Human Resource Development Scheme in the form of development & training programs by the State Governments under the National Mission on Food Processing is projected to bring more growth to the industry.

    To wrap up, the interchange of Indian brands and foreign brands across the world have propelled the prospects of expanding the Indian Food Processing Industry and bringing it a global recognition. Moreover, the Government of India is also rooting on this industry in every possible way whether it is the monetary aid, smooth trade, or advanced knowledge and facilities. Thus, this rising and ripening sector hold a promising future in the coming years.

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