India is one of the fastest growing economies, with numerous investment opportunities. The Indian food processing sector has achieved impressive growth, growing at Average Annual Growth Rate (AAGR) of 7.26% in the last 7 years. This indicates its strong potential and contribution to the Indian economy. The recent initiatives of the Government of India for driving the holistic growth of the Indian food processing sector such as simplification of processes, regulatory reforms, 100% FDI in food processing, Pradhan Mantri Kisan Sampada Yojana, Production Linked Incentive Schemes, creation of adequate infrastructure such as Mega Food Parks, cold chains, agro-processing clusters etc., have created a conducive environment for doing business in food sector in India.

With a population base of over 1.3 billion with rising disposable income, increased spending on food & consumer goods and fast-growing food retail market, India has become a Global Hub for food processing as well as food supply.

India’s booming with Investment Opportunities India offers ripe investment opportunities in the food processing sector, supported by a favourable environment for foreign investors and increasing demand. Recent initiatives include exempting processed food items from licensing under the Industries (Development and Regulation) Act, 1951.

The sector allows 100% Foreign Direct Investment (FDI) via automatic route, with additional provisions for trading food products through e-commerce. A lower GST applies to raw and processed food products, with over 73% covered in lower tax slabs. India also introduced a Production Linked Incentive (PLI) scheme worth USD 1.3 billion to foster global food manufacturing champions. Processed food exports have significantly increased to 23.65% of total exports in 2023-24 from 13.7% in 2014-15, driven by rising shipments of rice, fruits, vegetables, livestock, and dairy products.

With the objective of introducing the world to rich Indian food culture, as well as, promoting investments in the diverse food processing ecosystem of India, the Ministry of Food Processing Industries organized the 2nd edition of World Food India in 2023 between 3rd to 5th November 2023. The mega event provided a platform to explore the Indian market across the value chain in food processing and food retail.

The event saw the participation of 1208 exhibitors and over 200 domestic buyers. In addition to this, in terms of the international participation, the event saw 715 international buyers from 90 countries, 15 country pavilions as well as 16 international delegations that visited the mega event. There was also participation from 24 domestic states and 14 central government ministries/departments/commodity boards that were present in the event. Additionally, one of the key highlights was the high-level industry interaction which was co-chaired by Hon’ble Minister, Commerce & Industry and Hon’ble Minister, Food Processing Industries.

Given the resounding success of the previous edition of World Food India, the Ministry is organizing the 3rd edition from 19th to 22nd September 2024 at Bharat Mandapam, New Delhi. In the upcoming edition of World Food India, we have identified five focus areas namely, Sustainable packaging, minimizing waste, plant-based proteins, food irradiation and ensuring food safety for all from farm to fork. These sectors are imperative for domestic consumption, trade and innovation. All the activities in the mega event are aimed at increasing mutual cooperation and FDI in the food processing & allied sectors. The event will also have sectoral seminars, state seminars, country sessions, B2B/B2G/G2G sessions, besides an exhibition where state pavilions, sectoral pavilions and company stalls would be put up.

See related news: Invitation to a webinar on “Investment Opportunities in Indian Food Processing Sector & World Food India 2024”