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| India's food industry to reach $258 bn by FY15 |
| Press Trust of India / Mumbai Nov 26, 2009, 20:24 IST |
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The size of the food industry in the country is expected to touch $258 billion by fiscal 2015 from the current level of $181 billion.
"The food processing industry in India is one of the largest in terms of production, consumption, export and growth prospects. The food industry is expected to reach $258 billion by FY15 and $318 billion by FY20 from the current level of $181 billion," Ficci Food Processing Committee Chairman Shrijeet Mishra said at a 'Foodworld India 2009' conference here today.
Domestically, the spending on food and food products amounts to 21 per cent of India's GDP, constituting the largest portion of the Indian consumers' total spending — more than a 31 per cent share of the income. As much as 70 per cent of the current food spending by the Indian consumer is on agri-products.
Buoyed by a favourable policy environment and demand from the young consuming-class with growing disposable incomes, India offers significant investment opportunities in the food and agri-business, Mishra said.
Ministry of Food Processing Industries Secretary Ashok Sinha said, the government aims to make India the food supplier of the world by tripling the growth of the industry.
Sinha said in an effort to boost the food sector, the government is working on agri-zones and the concept of mega food-parks.
Twenty such mega-parks are proposed across the country in various cities to attract Foreign Direct Investment (FDI) in the food-processing sector.
The government has so far released a total assistance of $23 million to implement the Food Parks Scheme. It has so far approved 50 food parks for assistance across the country. The Centre also plans $22-billion subsidy for mega food processing parks.
He said the government is shortly launching 4-5 mega food-parks and has removed some anamolies to pave the way for smooth participation of private players, Sinha said.
The national policy on food processing also aims at increasing the level of food processing from the present 2 per cent to 10 per cent by 2010 and 25 per cent by 2025. The government has allowed 100 per cent FDI in processing sector, Sinha said.
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