Food Processing Industry Review in India

The food processing sector in India is of fundamental importance, holding as it does the vital link between agriculture and industry. The sector is poised for enormous growth and already contributes about 12.7 percent of the country's GDP and provides nearly 60 percent of all job opportunities by directly employing around 1.6 million workers. The industry is the 5th largest sector in the country in terms of production, consumption, export and growth. The worth of the Indian processed foods industry was USD 91 billion in 2010 and it is growing at the rate of 13 percent per annum. By 2015, it is expected to touch USD 175.2 billion.
The availability of raw materials, changing lifestyles and relaxation in regulatory policies is fuelling the growth of this industry.India is the highest producer of milk in the world at 90 million tonnes per annum. With an arable landmass of 184 million hectares, it is the second largest producer of fruits & vegetables (150 million tonnes per annum) and the third largest producer of food grains and fish. It has the largest livestock population as well. In addition to its large and wide-ranging raw material base, India is a huge consumer base of over one billion people. All these are positive factors that add vigour to the processed foods industry, which holds tremendous opportunities for large investments.
This report is an across-the-board examination of the country's food processing industry. It studies the market size and latest trends, and critically analyses the growth drivers that are propelling the sector, such as the entry of major international food product manufacturers who are eliminating category boundaries through product innovation. It also reviews the key players of this industry – Amul and Mother Diary – within the parameters of key growth factors, thereby indicating the essential prospects of the sector.
We pay special emphasis in the report to the support that the Government of India is lavishing on the growth of the