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Why India

Key Growth Drivers

7.2% GDP growth in 2022-23
Supportive Policy & Regulatory Environment.
Diverse & Growing Market.
India’s consumer spending to grow to $6 Tn by 2030
Second largest producer of farm produce in the world with largest consumer base.

The Sunrise Sector Food Processing

1^st in Dairy production; 2^nd in Horticulture crops and fish production globally.
AAGR of 5.35% in the last eight years ending 2022-23.
12.01% of the total workforce in the registered manufacturing sector.
The sector has attracted USD 6.8 billion FDI equity inflow during 2014 to 2023-24.
Processed Food contributed 23.4% of agri-food exports in 2023-24.

Indian economy has seen tremendous growth over the last decade. Currently India is the 5th largest economy in the world with a size of US $3.5 Tn. The Food Processing sector has been a large contributor to this growth. In 2023-24, processed food contributed to 23.4% of total agri exports. A favorable policy and regulatory environment has bolstered substantial growth in the industry. Favorable policy reforms combined with attractive incentives & schemes such as 100% FDI through automatic route for Food Processing Industries and 100% FDI through government-approval route for retail trading, including through e-commerce, and various government schemes have been key drivers for the sector.

Business Reforms

This resilient growth of the economy has been made possible by a wide variety of business reforms adopted by the Government of India over the past few years. This includes a broad spectrum of enabling policies ranging from tax reforms, fiscal incentives, export support, logistics infrastructure development, digital & banking support, ease of doing business reforms etc. The business environment in the country has evolved to be one of the best in the region. Some of the major reforms adopted are as illustrated below:

Schemes

The Government is continuously putting its best effort to develop Indian food processing & allied industry to achieve its true potential. Some of these include –

Pradhan Mantri Kisan Sampada Yojana (PM-KSY)
Production Linked Incentive (PLI)
Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME)
Food Processing fund (FPF)

Pradhan Mantri Matsya Sampada Yojana (PMMSY)
Fisheries and Aquaculture Infrastructure Development Fund (FIDF)
Animal Husbandry Infrastructure Development Fund (AHIDF)
Agriculture Infrastructure Fund (AIF)

National Single Window System

National Single Window System Access over 642 Central Approvals and 6113 State Approvals. 32 Ministries/ Departments and 25 State Governments have been onboarded on National Single Window System.
PM Gati Shakti GIS based technology platform for multi-modal connectivity, logistics efficiency and seamless movement, of goods & services.
Open Network for Digital Commerce Open platform network to expand via e-commerce by connecting with solution partners.
National Logistics Policy Objective is to build a logistics ecosystem in India that is technology enabled, integrated, cost effective, and dependable.

Project Development Cells Specialized teams across ministries to handhold investors and ready on the shelf investible projects.
ODOP The scheme adopts the One District One Product (ODOP) approach to reap the benefit of scale in terms of procurement of inputs, availing common services and marketing of products.
The ODOP Initiative has identified a total of 1102 products from 761 districts across the country.

Fast-Growing World-Class Infrastructure Facilities

India hosts one of the fastest growing networks of infrastructure in Asia, including rail network, airports, ports, highways & industrial corridors connecting all parts of the country with the world. Some key statistics related to infrastructure capacity in India is listed below:

Railways

Largest Rail Network in Asia (with 108,706 kms of railway tracks).

3.5+ Bn Passengers & 1.4+ Bn tonnes of freight carried annually
Highways

#2 Road network globally (with 63.73 lakh kms of road network).

37 Km of roads constructed daily, highest recorded historically.
Aviation

More than 3 Mn MT of cargo handled in 2022.

123+ Mn domestic & 43+ Mn international passengers serviced annually.
Ports

1600+ MTPA cargo handling capacity of the Major Ports.

200+ Major & minor ports well connected with road and railway lines.
Inland Waterways

India has about 14,500 km of navigable waterways which comprise of rivers, canals, backwaters, creeks, etc. About 126 Million Metric Tonnes (MMT) of cargo is being moved anually by Inland Water Transport (IWT).

India as an Opportunity

Supportive Policy Environment

Business & Regulatory Reforms

100% FDI permitted in Food Processing, Retails trading including e- commerce
Single Window System adopted by Central Departments & state departments
Agro-Processing included in priority sector lending - loans up to INR 100 crore per borrower

Tax Reforms

One of the lowest corporate tax globally at 15% for new businesses
100% income tax exemption on profits derived for 5 years
RODTEP (remission of duties & taxes on exported products)

India Advantage

Agri-commodity Hub: India boasts a robust foundation of raw materials, being among the largest producers of the agricultural, horticulture commodities, milk, meat and fish.
Huge Consumer Base: With expansive consumer base of 1.4 billion, India presents a burgeoning demand for high-quality food products.
Economy: India is the fastest growing and 5th largest economy in the world

Conducive Tax Regime: 100% exemption of Income Tax on profits and gains for new Food Processing Units
Shifting Lifestyle Trends: Increasing Urbanization, Nuclear Families and aspirations increasing demand for Functional Foods/Nutraceuticals

India as Food Basket of the World

EXPLORE: Innovative solutions driving transformation in the supply chain ecosystem of India’s Food Processing Sector in India
SHOWCASE. 'Amrit Kaal' through the demonstration of numerous achievements resulting from the progressive initiatives of the Government of India.
BOOST: Investment interests from both domestic & foreign investors

PROMOTE: India as Food Basket of the world emphasizing ready-to-eat/ready-to-cook millets, organic produce, indigenous processed foods, etc.
PRESENT: Investment opportunities in technology, equipment manufacturing, logistics and cold chain infrastructure.

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