The expanding horizon: How food processing industry drives economic growth

Being the largest producer of several food commodities like milk, millet, fruits, vegetables, tea, and fish, India has created a strong foundation for the food processing industry

India is one of the largest and fastest-growing economies in the world and its food processing industry is playing a significant role in driving economic growth and ensuring food security. The nation has not only witnessed unprecedented growth and development but has also emerged as a global powerhouse propelled by a vibrant and diverse economy.
 

Owing to the progressive policy initiatives and interventions of the Government, the sector has shown remarkable performance in recent years, contributing 7.66 per cent to the gross value added (GVA) in manufacturing and 8.45 per cent to the GVA in agriculture as of the fiscal year ending 2022-23.
 

India stands as a significant player in global food production with its rich and diverse agricultural resources. Being the largest producer of several food commodities like milk, millet, food grains, fruits, vegetables, tea, and fish, it has created a strong foundation for the food processing industry. India’s agri-food exports soared to an impressive $46.4 billion in financial year 2023-24, highlighting the sector’s rapid growth and increasing global impact. The share of processed food in total agri-food exports has increased from $4.90 bn in 2014-15 to $10.88 bn in 2023-24.
 

The opportunities within India’s food processing sector are vast and varied, with each sub- sector offering unique growth prospects. The advent of technology has revolutionised the industry, enabling advancements in food safety, packaging, logistics, and supply chain management. The surge in e-commerce and the increasing demand for ready-to-eat and convenience foods have further opened new avenues for growth, making it an exciting time for both investors and entrepreneurs.
 

The Ministry of Food Processing Industries (MoFPI) has implemented various schemes and initiatives that have been pivotal in driving transformation and fostering a robust ecosystem. This ecosystem encourages innovation, investment, and inclusivity across micro, small, medium, and large enterprises. The flagship scheme Pradhan Mantri Kisan Sampada Yojana (PMKSY) has played a crucial role in developing modern infrastructure with efficient supply chain management from farm gate to retail outlet. These efforts have not only minimised post-harvest losses but also significantly enhanced export potential. Additionally, the Production Linked Incentive Scheme (PLIS) represents a major effort to boost the growth and competitiveness of India’s food processing industry. The Ministry is also implementing a centrally sponsored “PM Formalisation of Micro food processing Enterprises (PMFME) Scheme” for providing financial, technical and business support for setting up / upgradation of micro food processing enterprises in the country.
 

World food India: Showcasing India as a global food basket
 

World Food India conceptualised by Ministry of Food Processing Industries serves as a testament to India’s commitment to becoming a global food processing hub. This annual extravaganza serves as a global platform, bringing together stakeholders from various segments of the food value chain, fosters collaboration, encourages knowledge sharing, and propels India towards achieving its vision of becoming a global food processing powerhouse. The highly anticipated mega event will be held from September 19 to 22 at Bharat Mandapam in New Delhi. Building upon the success of previous editions, this year’s event aims to be larger and more impactful, offering unparalleled opportunities for networking and collaboration. The Ministry invites global investors, business leaders, food processing companies, exporters, importers, innovators, and government representatives to join this prestigious event and leverage India’s massive food market and economic opportunities.
 

World Food India 2024 will feature specialised zones dedicated to several new sectors, including Pet Food, HoReCa (Hotels, Restaurants, and Catering), and Post Harvest Machinery. These additions reflect the evolving landscape of the food industry and aims to attract diverse investments and innovations. The event will host a series of thematic sessions designed to facilitate knowledge sharing and collaboration among industry stakeholders. Key topics will include sustainable packaging technologies; minimizing waste, maximizing value; revolutionising food and trade amongst others. These sessions will provide a platform for experts to address challenges, share best practices, and explore strategies for sustainable growth. Parallelly, the Reverse Buyer Seller Meet will enable direct interactions between international buyers and Indian sellers, enhancing market access and fostering new partnerships.
 

In addition to the above, the Global Food Regulator Summit, organized by the Food Safety and Standards Authority of India is scheduled to convene alongside World Food India. This summit aims to encourage sustained dialogue and collaboration among global food regulators to address critical issues in food safety, quality, and innovation.  The Ministry of Food Processing Industries remains committed to bolster a vibrant and resilient sector that not only contributes to India’s economic prosperity but also ensures the well-being of its people.

The writer is secretary, Ministry of Food Processing Industries