Introduction:
The food processing sector is one of the largest sectors in India in terms of production, growth, consumption, and export. India's food processing sector covers fruit and vegetables, spices, meat and poultry, milk and milk products, alcoholic beverages, fisheries, plantations, grain processing, and other consumer product groups like confectionery, chocolates and cocoa products, soya-based products, mineral water, high protein foods, etc. Since liberalization in August 1991, proposals for projects have been proposed in various segments of the food and agro-processing industry. Besides this, Govt. has also approved proposals for joint ventures, foreign collaboration, industrial licenses and 100% export-oriented units envisaging an investment.

India's food processing sector has demonstrated significant attractiveness for foreign direct investment (FDI), particularly over the past decade. From April 2000 to December 2024, the sector received a total FDI of USD 13.01 billion. Notably, the period between 2014 and 2024 alone accounted for approximately USD 7 billion in FDI equity inflow, highlighting a strong growth trajectory during these years.

This robust investment underscores the critical role of the food processing industry in the Indian economy. It currently constitutes a substantial 32% of the total food market and ranks among the top five sectors in terms of production, consumption, exports, and anticipated growth. The consistent increase in FDI inflows reflects growing global confidence in India's food processing capabilities and its potential as a major economic driver.

Exports: India's exports of Processed Food were Rs. 7,886.62 USD Millions in 2024-25, which is as follows:

The Indian food processing industry is primarily export oriented. India's geographical situation gives it the unique advantage of connectivity to Europe, the Middle East, Japan, Singapore, Thailand, Malaysia and Korea. One such example indicating India's location advantage is the value of trade in agriculture and processed food between India and the Gulf region.

The Indian government has highlighted the food processing sector under the “Make in India” initiative, a Government of India program designed to facilitate investment, foster innovation, enhance skill development, protect intellectual property, and build a good manufacturing infrastructure. The food processing sector has emerged as an important segment of the Indian economy in terms of its contribution to the gross domestic product, exports, investment, and employment.