The second largest producer of farm produce in the world and the third largest economy in terms of Purchasing Power Parity (PPP), is a promising place to be in. With a massive food market that is fast-expanding, exciting growth in the retail sector, and attractive economic policies and fiscal incentives, India’s food economy is thriving. See ICE’s Technova food processing report here
The advantage of India’s food sector
1. India’s food and grocery market is the sixth largest in the world.
2. The annual growth rate of the food processing sector is more than 7%.
3. India’s online food delivery industry grew 150% in 2016.
4. Food retail is the next big opportunity with a share of 70% in the total retail market.
5. India offers the largest diversified production base see the report on agri-produce here .
Growing infrastructure support
Advancing technology and equipment
1. New and emerging technology in fruits & vegetables processing, cold storage, reefer containers, IQF processing, pack houses, and packaging
2. Food Testing Labs
A favourable economic and business environment
1. India’s GDP growth in 2016 has been at 7.6%.
2. Large skilled workforce.
3. 100% FDI through automatic route in food processing
4. 100% FDI in retail marketing of food products that are produced and / or manufactured in India, including through e-commerce.
5. Proactive policy support.
6. Single-window clearance
7. A dedicated investors portal has been set up by MoFPI aimed at easing the process for investors: http://mofpi.nic.in/
8. The Government of India has set up Invest India as its official Investment Promotion and Facilitation Agency: http://www.investindia.gov.in/