Invest in India’s thriving food processing sector, driven by government initiatives, substantial FDI and technological advancements, ensuring sustainable growth and profitability
$46.4 Billion
India’s export of agricultural and processed food products in 2023-24, with processed food accounting for USD 10.88 billion, contributing 23.4% of the total agri-food exports.
5.35%
average annual growth rate of the Food Processing sector over the last 8 years, ending in 2022-23.
12.41%
of employment in the total registered/organized sector is provided by the food processing sector, making it one of the largest employment providers in the organized manufacturing sector, according to the Annual Survey of Industries (ASI) report for 2022-23.
India’s food processing industry has undergone a rapid transformation, driven by its vast agricultural base, rising domestic demand and supportive government policies. As of 2024, India is poised to become a global leader in food processing, with a growth trajectory that outpaces many developed economies. The sector is anchored in the country’s strong agricultural foundation—India is the world’s largest producer of fruits, vegetables, millets, tea, food grains, milk and livestock.
India’s agricultural diversity fuels both domestic and export-driven demand in food processing. In FY 2023, the country produced 212 million metric tons of vegetables and 112 million metric tons of fruits, highlighting the immense capacity of its agricultural sector. Additionally, India is the largest producer and exporter of cereal products, with rice (Basmati and Non-Basmati) accounting for 95% of total cereal exports. Key export destinations for 2023-24 included Saudi Arabia, Iran, Iraq, Benin, the United Arab Emirates and Vietnam.
Infrastructure Development by MoFPI
To strengthen the food processing ecosystem, the Ministry of Food Processing Industries (MoFPI) has implemented key initiatives:
Mega Food Parks: 41 Mega Food Parks with a combined processing capacity exceeding 4 million metric tonnes (MMT) have been approved, of which 24 are fully operational.
Agro-Processing Clusters: 76 Agro-Processing Clusters, with a total capacity of over 2 MMT, have been sanctioned to enhance value addition at the farm level.
Cold Chain Infrastructure: 400 Cold Chain Projects have been approved, adding over 35 MMT of storage and preservation capacity to reduce post-harvest losses.
Food Safety & Quality Assurance: 209 food safety and quality assurance facilities have been established to ensure compliance with domestic and international food standards.
A robust food processing sector is essential for diversifying and commercializing agriculture, extending shelf life, adding value to agricultural produce, creating employment, increasing farmers’ incomes and expanding export markets for agro-based products. With continued policy support and infrastructure development, India’s food processing industry is set to play a pivotal role in global food supply chains.
#1 Largest producer of milk, spices and pulses globally
#2 Largest producer of fruits, vegetables and rice globally
The Indian government allows 100% FDI in the food processing sector and retail trading of food products, including through e-commerce through the automatic & government route, with policies aimed at attracting global partnerships
In the food processing sector, FDI worth USD 13.01 billion was achieved from April 2000 to December 2024. India recorded FDI equity inflow of ~USD 7 billion between 2014 and 2024.
Processed Food contributed 23.4% of agri-food exports in 2023-24.
~73% of food products are in 0% & 5% slab. There is Nil GST on milk and its products, Meat, Fish, vegetables, nuts and fruits. Similarly, services of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labelling of fruits and vegetables, which do not change or alter the essential characteristics of fruits & vegetables, attract NIL GST.
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