India has great potential to become one of the top leaders in the food processing industry as it includes a rich agricultural resource and diverse raw materials. Indian food processing sector is one of the largest in the world and it is expected to reach up to US$535 billion by 2025. Since the last five years, the annual growth rate is 8.3% and by 2022 food processing sector received US$11.79 billion in FDI (Foreign Direct Investment). This sector generates employment of 12.32%. India’s food processing industry is primarily export oriented. India’s exports of processed food were $5,559.84 Million in 2021-22. The major share of export products was mango pulp, cucumber, processed vegetables etc.

The Indian food processing industry has grown rapidly. This may play a vital role in the growth of the Indian economy. The drivers for the demand for food processing are convenience and the people more inclined toward wellness. At the same time, Tier II and Tier III cities may not be the major consumer but a minor trend of purchase could be visible in these cities.

Techniques in the food processing industries include preservation, preparation, packaging, enrichment, fortification, extraction, concentration and processing aid. This industry is divided into five major segments including grains, cereals, pulses, oilseeds, fruit and vegetables, meat and poultry, dairy products and processed food.

Earlier, there was a lack of backward and forward linkages. Recently, the Ministry of Food Processing Industries has taken steps and plugged the gap in the supply chain in terms of the availability of market linkages. This initiative has proved useful to horticulture and non-horticulture perishable products like dairy products, meat, ready-to-eat, ready-to-cook, spices etc. Technical assistance is being given to the farmers by creating detailed project reports, capacity building assessments, raw material assessments, One District One Product (ODOP) list assessments etc.

Taking into account the backend scenario like the cold supply chain has leapt. This not only includes the cold storage facility but also refrigerated vehicles and the insulated vehicle had come into the picture. Such a plugin fills the gap in processed food durability and quality.

India is taking measures to lift investments in the food processing industry. Some initiatives like Pradhan Mantri Kisan Sampada Yojana (PMKSY), aim at developing modern food processing infrastructure. Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme (PMFME) aims to enhance the existing individual micro-enterprises in unorganized segments.

India had shown its efficiency through the green revolution, white revolution, pink revolution etc. Opportunities in the food industry are mainly for dairy products, horticulture products, etc. India is the world’s largest producer of milk but it ranks 46th in terms of export. Also, India is the second largest producer of vegetable but rank 15th in the global industry. This shows the potential of the Indian food processing industry for future growth.