The immense potential for FDI in the Indian Food Industry

Automated food factory

There is immense foreign direct investment opportunity in the Indian food business in India

• India is the largest food producer in the world

• India is the world’s second largest producer of Fruit and Vegetables (F&V) with a total output of 227 million tons and accounts for 15% of the global production of fruits and 10% of the global production of vegetables.

• Specific categories that have shown an impressive growth in the processed F&V sector are fruit juices, pulps, dehydrated frozen fruits and vegetable products, pickles, processed mushrooms, vegetable spices and curried vegetables.

• The Indian food retail market is expected to reach $ 894.98 billion

• Indian ready-to-eat (RTE) food market is projected to grow at a compound annual growth rate (CAGR) of around 22% between 2014 to 2019. Entrepreneurs and FDIs should look out the great opportunity in food processing industry.

• Positive economic development, hypermarkets and supermarkets are expanding rapidly which is accounting the bulk sale in (RTE) foods.

• Spending power has increased towards healthy and nutritious food which has good taste and color as well.

• Age profile of people eating out – 18 to 20 years – 18%, 21 to 30 years – 40%, 31 to years – 31%, above 40 years – 11%. The appetite of the young Indian population has been a key driver

• India has diverse agro climatic conditions and has a large and diverse raw material base available and suitable for food processing

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