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Indian Food Industry

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The Food Processing industry in India witnessed a rapid growth particularly during the 1980’s and 1990’s. This development took after the primary period of Green Revolution that had brought about increased agricultural output and requirement for its post-harvest management. The significance of this sector was realized by business groups prompting to expansion from grain trading to food processing.

Nowadays the food processing industry is generally considered has a “sunrise industry” in India because of its enormous growth potential and ability to attract agricultural economy and food chain services. The contribution of Indian food industry to world food trade is increasing every year. The food industry in India emerged has one of high growth and high profit sector due to its enormous potential for value addition, especially within food processing industry. It accounts for about 32 per cent of the country’s total food market, The Government of India has been serving has a means in the growth and development of food processing industry. Ministry of Food Processing Industries was formed by the government in the year 1988 through which every effort made to encourage investment in food industry.

This ministry is responsible for formulation and administration of rules, regulations and laws relating to food processing in India. The Indian food sector and grocery market is sixth largest globally with retailing has a major contributor of sales. The Indian food processing industry has a share of 32 per cent in country’s total food market. It is one of the largest industries in India and is ranked fifth in terms of production, consumption, expected growth and export. It contributes around 8.3 percent and 8.8 percent of Gross value added (GVA) in agriculture and manufacturing respectively.

This industry makes contribution of 13 percent to India’s export and 6 percent to total industrial investment. Indian gourmet food industry is presently valued at US$1.3 billion and is advancing at a Compound Annual Growth Rate of 20 percent along with the prediction that India’s organic food market would grow by three times by 2020.

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