Food processing industry in India: A study on sunrise sector

Abstract

India ranks as the world's second-largest producer of fruits and vegetables, trailing only China. However, a mere 2% of this vast produce undergoes processing. The processing levels remain low across various categories: approximately 2% for fruits and vegetables, 8% for marine products, 35% for milk, and 6% for poultry. One of the significant challenges facing this sector is the insufficient availability of suitable varieties that can be effectively processed. The food processing industry in India, which represents 32% of the country’s food market, stands as one of its largest sectors and ranks fifth worldwide in terms of production, consumption, exports, and projected growth. It contributes significantly to both manufacturing and agricultural sectors, contributing 8.80% and 8.39% respectively to Gross Value Added (GVA). Moreover, it accounts for 13% of India’s total exports and represents 6% of industrial investments. Currently valued at US$ 1.3 billion, the Indian gourmet food market is expanding at a Compound Annual Growth Rate (CAGR) of 20%. The present study introspects into various aspects of the food processing industry in Indian context.