Indian Food Processing Industry

Released on: September 29, 2008, 4:36 am

Press Release Author: bharatbook

Industry: Food & Beverage

Press Release Summary: launches a latest report "Indian Food
Processing Industry" which covers an overview of the global food processing industry
along with the position of the Indian food processing industry in the global

Press Release Body: added a new report on "Indian Food Processing
Industry" (

The report focuses on the dynamics of the industry, the market segments, the growth
of the sectors in India and what are the challenges and opportunities that the
industry is facing. On the competitive landscape, the report lays out the major food
processing companies that functions within the Indian industry and the strategies
these companies are following to capture the major chunk of the market share.

The concluding part of the report covers the drivers of the industry and the future
prospects of the food processing industry in India.

Executive Summary

Green revolution has transformed India from a land of shortage to a land of surplus.
India is presently the world's second largest producer of food, and has the
potential of being the biggest with developing food and agricultural sector. Growing
economy, surplus food and changing lifestyle has shifted the consumption pattern,
from cereals to more varied and nutritious diet of fruit and vegetables, milk, fish,
meat and poultry products. This gradual progression has given rise to the food
processing industry in India. The food processing sector in the country with its
vast potential has emerged as one of the major driver of economic growth and is
often hailed as a sunrise industry.

Interestingly, the fact is while the country’s GDP growth rate had increased from
3.5% in 2002-03 to 9% in 2006-07; the food processing sector has grown from 7% to
13.1% during the same period. However, market experts are of the opinion that in
future, the food products is going to contribute majorly towards India’s GDP growth.

India’s food processing sector primarily covers fruit and vegetables; meat and
poultry; dairy products, alcoholic beverages, fisheries, plantation, grain
processing and other consumer product groups like confectionery, chocolates and
cocoa products, Soya-based products, mineral water, high protein foods etc.

India presently accounts for less than 1.5% of international food trade, which
indicates that both investors and exporters are yet to gain more from the Indian
food processing industry. The industry requires about Rs 29,000 crore in investment
over the next five years to create necessary infrastructure,
state-of-the-art-technology and expand production facilities to match the
international quality and standards. To promote the sector, the Indian government
had taken several steps such as de-licensing of the sector, several duty and tax
relief, financial assistance for infrastructure building and setting up of food
processing units.

It is expected that in future bulk investments and modern food processing
technologies are going to turn the fortune for Indian food processing industry. The
sub-sectors such as soft-drink bottling, confectionery manufacture, fishing,
aquaculture, grain-milling and grain-based products, meat and poultry processing,
alcoholic beverages, milk processing, tomato paste, fast-food, ready-to-eat
breakfast cereals, food additives, flavours etc will become the driving force behind
the Indian food processing industry.

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