India's Thriving Food Processing Sector: A $1.27 Trillion Opportunity
Explore the dynamic landscape of India’s food processing sector, set to reach $1.27 trillion by 2027. Discover growth drivers, investment opportunities, and supportive government policies.
Unlocking Investment and Business Expansion in India's Food Processing Sector
Historic FDI Growth
$12.81 billion in FDI inflows from April 2000 to June 2024, 100% automatic route permitted.
Infrastructure Development
$2.36 billion invested across 31 projects, enhancing logistics, storage, and processing.
PLI Scheme
$1.3 billion allocated for 2021-2027, aiding 172 approved food processing companies.
Budget Boost
$396 million allocated for FY25, marking a 13% year-over-year increase.
Key Investments Driving India's Food Processing Industry
Nestlé India
Ambitious rural expansion targeting 120,000 villages by 2025.
Cargill (US)
$110 million investment to expand edible oil and dairy operations.
ITC
Major $2.39 billion investment in FMCG, dairy, and packaged foods.
Coca-Cola India
$1 billion investment planned for juice processing and beverage facilities.
Growth Drivers Transforming India's Food Processing Industry
Consumer Market Growth
India's food consumption is projected to reach $1.2 trillion by 2025-26, driven by rising incomes and urbanization. Changing lifestyles are increasing demand for RTE and RTC products.
Infrastructure Development
India has 948 cold storage units with a capacity of 18.16 lakh MT. 372 cold chain projects completed, providing enhanced storage and transport.
Government Support Programs
PMKSY has approved 540 projects, creating 86.06 lakh MT of processing capacity. Mega Food Parks offer common infrastructure for manufacturers.
Unlocking Investment and Business Expansion in India's Food Processing Sector
Historic FDI Growth
$12.81 billion in FDI inflows from April 2000 to June 2024, 100% automatic route permitted.
Infrastructure Development
$2.36 billion invested across 31 projects, enhancing logistics, storage, and processing.
PLI Scheme
$1.3 billion allocated for 2021-2027, aiding 172 approved food processing companies.
Budget Boost
$396 million allocated for FY25, marking a 13% year-over-year increase.
Government Policies Catalyzing Food Processing Growth in India
100% FDI
Allowed in food processing and retail trade of food products manufactured in India.
PLI Scheme
$1.3 billion for food processing modernization and organic food promotion.
Tax Benefits
Lower corporate tax and 100% profit exemption for the first five years.
Priority Sector Lending
Loans for food processing industries categorized under PSL.
India's Food Processing Market: A Prime Destination for Foreign Investors
Fastest Growing Market
Market projected to reach $1.27 trillion by 2027.
100% FDI Allowed
Open investment policies with strong government incentives.
Strong Export Potential
Processed food exports reached $17 billion in FY24.
Advanced Infrastructure
Extensive cold storage and Mega Food Parks.
