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Food processing

World's largest milk producing nation

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This page was last updated on - Mar 16, 2021


Food Processing - "A Sunrise Sector"

The Indian food ecosystem offers enormous investment opportunities with stimulating growth in food retailing, favorable economic policies and attractive tax incentives. The grocery and grocery market in India is the sixth largest in the world. The grocery and grocery retail market in India continues to account for nearly 65% ​​of the total retail market in India.

The Government of India, through the Ministry of Food Industry (MoFPI), is also taking all necessary steps to stimulate investment in the food industry. The government has approved the establishment of 39 Mega Food Parks (MFPs) under the Mega Food Park Program. 18 mega food parks are currently operational.

Click here to learn more about MoFPI Approved Mega Food Park Projects.

  • By 2024, the food industry is likely to attract $ 33 billion in investment and create jobs for 9 million people
  • By 2025, the Indian food sector is expected to be worth over half a trillion dollars
  • By 2030, Indian households' annual consumption will triple, making India the fifth largest consumer

100% foreign direct investment is allowed in the food industry through the automatic route.

100% FDI is permitted for trade through the government licensing pathway, including through electronic trade in food made or manufactured in India.

Please refer to the FDI Policy for more details

  • Share in the Indian food market

  • Share of total employment

  • Share of India's exports

  • Cutting intensity

World's largest producer, consumer and exporter of spices

World's largest processor, manufacturer and consumer of cashew nuts

The world's second largest producer of grain, fruit and vegetables

Food processing information package

Industrial scenario

The processed food market is projected to grow from $ 322 billion in 2016 to $ 543 billion in 2020, with an annual growth rate of 14.6%.

The main sub-segments of the food industry in India are: dairy products, fruits and vegetables, poultry and meat processing, fishing, food retailing, etc.

Important facts:

  • 311.71 million t of horticultural production in 2017-18
  • Milk production of 176.3 million tons in 2017-18 with a per capita availability of milk of 375 grams per day in 2017-18
  • Egg production of around 95.2 billion in 2017-18
  • The total fish production between 2017 and 18 was 12.6 million tons
  • The food retail market is mainly dominated by the segments Food Grocery (growth 25% CAGR) and Food Services (growth 15% CAGR).


  • Agricultural commodity hub

    Largest producer of several agricultural commodities

  • Huge consumer base

    1.3 billion consumers with increasing demand for branded foods

  • Strong economy

    India is the fastest growing largest economy in the world

  • Conducive politics

    Proactive government policies with attractive tax incentives

  • One District, One Product (ODOP)

    Under ODOP scheme, 135 district-specific unique products for 728 districts have been identified. across the country

Industrial land banking portal

GIS-based map with the available infrastructure for setting up manufacturing plants


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