For more than two decades now India has been dreaming of a sunrise in its food-processing industry. Will the sector see a new dawn as the country now faces the challenge of jobless growth?
India is one of the front-running nations when it comes to production, consumption and export of food products in the world. This is well attributed to the robust food production, increasing urbanisation, dynamic lifestyle changes and growing number of working women and nuclear families.
Accounting for 32 pc of the total food market, India’s food-processing sector is estimated to be worth more than EUR 20 billion. It is one of the largest industries in India, currently employing 13 million people directly and 35 million indirectly. It accounts for 14 pc of the manufacturing Gross Domestic Product (GDP), nearly 13 pc of India’s exports and six pc of total industrial investment.
However, when compared to global figures, merely over two pc of India’s annual food production is processed — an abysmally low figure when compared to Malaysia (83 pc), China (23 pc) and the United States of America (US) (65 pc).
Despite a key role in the Indian economy, the agriculture sector is faced with several roadblocks. Heavily exposed to the vagaries of nature and weather, the Indian farming sector is plagued by lack of proper irrigation, low mechanisation, poor agricultural infrastructure and low export orientation. Worst of all, despite a large network of banks—nationalised, private, cooperative, commercial, regional and rural — the farm sector continues to be under serviced —in terms of lending as well as services.
Untapped potential
Sagar Anand Kurade, expert on food processing and associated infrastructure and technologies, asserts that the sector is already improving in India. The Indian food processing industry is worth USD 250 billion. “Today, whatever we have in the country, be it rice, pulses, bread, or any form of food, is processed. Even the water we drink in metros or Tier-I and Tier-II cities is processed.”
This story is from the September - November 2017 edition of Biz@India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the September - November 2017 edition of Biz@India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Frozen Food Fandom
Frozen food has declared a revolution, and most supermarkets and now even neighbourhood grocery stores are happily complying with it.
Fast Food Chains - Delivering Despite Disdain
When McDonald’s stepped in India in 1996, the quintessential Indian food market was sceptic of consuming fast food. However, the increasingly fast-paced lives of Indian consumers led to the requirement for quick meals; and today India is one of the fastest growing fast food markets.
World Food India, 2017- A Tour Of Indian Food Industry
Ministry of Food Processing has taken the responsibility of connecting the Indian market to global players and also promoting the Indian market for foreign investment through World Food India, 2017.
Food Imports In India - Satisfying The Evolving Indian Palate
Catering to the preferences of consumers and their willingness to spend more on new items, shelves in Indian supermarkets are being packed with an array of processed, imported foods. But are the industry watchdogs filtering all that is reaching the consumers?
The Chai Story Of India
India is one of the leading tea exporters of the world, but why is there almost no existence of any Indian tea brand in the global market?
Food Training Institutes - Addressing The Dearth
The growth of Indian food processing and safety sector aided by the government’s skill development policy, has strengthened the process of food production, which has had a positive impact on exports, however, exposing a dearth in the whole process.
A Recipe For Growth - Fast Food, Fast Forward
For more than two decades now India has been dreaming of a sunrise in its food-processing industry. Will the sector see a new dawn as the country now faces the challenge of jobless growth?
Special Report: Anuga - Focus On Indian Food
India’s participation at ANUGA increased by 19 pc in terms of exhibitors and 220 pc in terms of visitors from 2013 to 2015, which has led to India presenting its culinary diversity and efficiency in the food industry as a partner country in the 34th edition of ANUGA taking place this year.
Trials And Tribulations Of Canning Sugarcane Juice
People in India savour freshly extracted sugarcane juice dispensed with lime and ginger extract, served in glasses by vendors across the country. However, due to its highly perishable nature, it cannot be preserved beyond a few hours, which has restricted the availability of canned sugarcane juice in India. There are companies and institutions supplying it, albeit with a short shelf-life.
Organic Food Manufacturing In India - Alternative Food Production And Consumption
Organic food is increasingly gaining attention across the world and has potential to grow in India despite a number of challenges.
