Market Size
- The Indian food processing industry accounts for 32 % of the country's total food market, one of the largest industries in India. It is ranked 5th in production, consumption, export and expected growth.
- The Indian food and grocery market is the world's sixth-largest, with retail contributing 70% of the sales.
- The Indian food retail market is expected to reach Rs 61 lakh crore (US$ 915 billion) by 2020.
- It contributes around 14% of manufacturing Gross Domestic Product (GDP), 13% of India's exports and six per cent of the total industrial investment.
- The Indian gourmet food market is currently valued at US$ 1.3 billion and is growing at a (CAGR) of 20%.
- India's organic food market is expected to increase greatly by 2020.
- The organized food business in India is worth US$ 48 billion, of which food delivery is valued at US$ 15 billion.
- The online food delivery industry grew 150% year-on-year, with an estimated Gross Merchandise Value (GMV) of US$ 300 million in 2016.
Exports of processed food and related products
- During FY11–16, India's exports of processed food and related products (including animal products) grew at a CAGR of 11.74%, reaching US$ 16.2 billion.
- The Middle East and Southeast Asia are the main export destinations for food products.
- In FY17, India's exports stood at US$ 1.3 billion.
Government Initiatives
- In Union Budget 2017-18, the Government of India has set up a dairy processing infra fund worth Rs 8,000 crore.
- Union Budget 2016-17 proposed 100% FDI through the FIPB (Foreign Investment Promotion Board) route in marketing food products produced and manufactured in India.
- The Government of India has relaxed the sector's foreign direct investment (FDI) norms, allowing up to 100% FDI in food product e-commerce through an automatic route.
- The Food Safety and Standards Authority of India (FSSAI) plans to invest around Rs 482 crore (US$ 72.3 million) to strengthen the food testing infrastructure in India by upgrading 59 existing food testing laboratories and setting up 62 new mobile testing labs across the country.
- The Indian Council for Fertilizer and Nutrient Research (ICFNR) will adopt international best practices for research in the fertilizer sector, enabling farmers to get good quality fertilizers at affordable rates and achieve food security for the commoner.
- The Government of India allocated Rs 1,500 crore (US$ 225.7 million). It announced various measures under the Merchandise Exports from India Scheme (MEIS), including the setting up of agencies for aquaculture and fisheries in coastal states and export incentives for marine products.
- FSSAI has issued new rules for importing products to address concerns over the entry of sub-standard items and simplify the process by setting shelf-life norms and relaxing labelling guidelines.
- Spices Board, set up by the Ministry of Commerce to develop and promote Indian spices worldwide, aims to spice exports of US$ 3 billion by 2017.
- The Government of India has approved the setting up five numbers of Mega Food Parks in the states of Bihar, Maharashtra, Himachal Pradesh and Chhattisgarh. The Government plans to set up 42 such mega food parks across the country in three to four years.
Source: ibef.org
