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Food Processing

India’s massive food processing sector is on track to boom.

India’s massive food processing sector is on track to boom. Currently worth USD 39.71 Billion it is expected to grow to USD 65.4 Billion by 2018. Although the majority of food manufactured in India is consumed domestically, exports are rising with major sub-industries including grain milling, sugar, edible oils, beverages and vegetable products leading the way.

With its significant agricultural resources, abundant livestock and cost competitiveness, India is fast becoming a global hub for processed foods.

One of India’s largest industries

Food processing is big business in India employing 13 million people directly and 35 million people indirectly.

The sector makes up 14% of manufacturing GDP, nearly 13% of India’s exports and 6% of total industrial investment.

The Indian food processing industry accounts for 32% of the country’s total food market.

A Foodies Paradise

Rich in agricultural resources: India is the world’s number one producer of foods including chickpeas, dried chilies, ginger and sesame seeds.

India ranks second globally for producing goods including anise, fennel, coriander, green peas, dried beans, lentils and tea.

India is third in the world at producing cashew nuts, coconuts, nutmeg, mace and cardamom.

Why process food in India?

The country’s strategic geographic location and proximity to food-importing countries gives it the edge when exporting processed foods.

Food processed in India is price competitive. Skilled manpower costs less than in many countries.

India has an extensive network of training facilities in food processing, including academic and research institutes.

The government provides many incentives to food processing companies, including capital subsidies, tax rebates, depreciation benefits, and reduced custom and excise duties for processed food and machinery.

Mega Food Parks

To cater to the burgeoning demand for Indian processed food, 42 Mega Food Parks are being set up across the country.

Situated close to farms, these are planned as one-stop facilities for food production, processing, cold storage, collection centres and transport.

Eight Mega Food Parks have become operational. One such park is in Tumkur in the south-western state of Karnataka. It is a public-private partnership between India's Ministry of Food Processing Industry and Future Group.

The mega food park is a central government scheme to provide excellent infrastructure facilities for food

Major Global Players are already investing

United States

Kraft, Mars, Del Monte, Kellogg’s, Pepsi, Cargill, Hershey, Walmart, Amazon



United Kingdom





Ferrero, Perfetti




Kagome, Yakult


Metro Cash & Carry