The food processing industry in India is witnessing rapid growth: it stands at $135 billion and is estimated to grow with a CAGR of 10% to reach $200 billion by 2015.
Notes sectorielles |
Food Processing is of enormous significance for India’s development because of the vital linkages and synergies that it ensures between two pillars of the economy, namely industry and agriculture, and has therefore been identified as a thrust area for development. The food processing industry in India is witnessing rapid growth: it stands at $135 billion and is estimated to grow with a CAGR of 10% to reach $200 billion by 2015.
The industry’s growth is driven by both supply and demand. India is the world’s third largest food producer and has the potential to become number one in due course of time with sustained efforts. In addition, there are important changes happening with the development of the organized retail, the increase in FDI in food processing and the introduction of new products. Coupled with an expanding middle class and consumer base, the food processing industry has thus been accorded high priority by the Government of India, with a number of fiscal relief and incentives, to encourage the commercialization and value addition to agricultural produce. India is one of the largest producers of raw materials for the food processing industry in the world but the industry itself is not fully developed yet.
The challenge for the growth of the industry in India lies in achieving high innovation coupled with high efficiency. Branding in the Indian food processing industry is a must and there is a need to build global brands that will define the face of Indian food worldwide. Improvements in food logistics and better infrastructure will help support the growth process.
So, the opportunities in the food processing industry are vast. However, there is a need for India to improve technology and productivity to be competitive globally.
Given the strength of France in the area of food processing, there are many areas of synergy between the two countries. France has shown a keen interest in investing in the food processing sector in India following the opening of the industry and the tax holiday announced by the Indian Government. The Governments of France and India have already jointly identified the food processing and packaging sectors as priority areas for economic co-operation between the two countries.
Indo-French Chamber of Commerce and Industry
Roxane Sabatie, Manager Events & Membership
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