Food Processing Industry
The Indian food industry is worth Learn how NEEM Scheme is helping them grow!
India is home to the sixth largest food and groceries market in the world. 70% of its sales comes from the retail segment. However, Indians still like to depend upon the freshly cooked food more than the processed food. Therefore the food processing Industry only has a 32% share in the entire food market scenario of India. Still it is a sizable chunk and is all set to grow even further as the dietary habits of the young Indians are constantly changing. This is happening because of the changing work patterns hence shifting focus on consumption of packed food more than cooking it. This trait will pave the way for growth of food processing Industry. The food processing industry is one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth. It contributes around 8.80 and 8.39 per cent of Gross Value Added (GVA) in Manufacturing and Agriculture respectively, 13 per cent of India’s exports and six per cent of total industrial investment.
According to the data provided by the Department of Industrial Policies and Promotion (DIPP), the food processing sector in India has received around US $7.54 billion worth of Foreign Direct Investment (FDI) during the period April 2000-March 2017. The Confederation of Indian Industry (CII) estimates that the food processing sectors have the potential to attract as much as US$ 33 billion of investment over the next 10 years and also to generate employment of nine million person-days.(GOI data source)
The Government of India aims to boost growth in the food processing sector by leveraging reforms such as 100 percent Foreign direct investment (FDI) in marketing of food products and various incentives at central and state government level along with a strong focus on supply chain infrastructure.
In Union Budget 2017-18, the Government of India has set up a dairy processing infra fund worth Rs. 8,000 crore (US $1.2 billion).
The Government of India has relaxed foreign direct investment (FDI) norms for the sector, allowing up to 100 per cent FDI in food product e-commerce through automatic route.
The Food Safety and Standards Authority of India (FSSAI) plans to invest around Rs. 482 crore (US $72.3 million) to strengthen the food testing infrastructure in India, by upgrading 59 existing food testing laboratories and setting up 62 new mobile testing labs across the country.
The Indian Council for Fertilizer and Nutrient Research (ICFNR) will adopt international best practices for research in fertiliser sector, which will enable farmers to get good quality fertilisers at affordable rates and thereby achieve food security for the common man.
The Ministry of Food Processing Industries announced a scheme for Human Resource Development (HRD) in the food processing sector. The HRD scheme is being implemented through State Governments under the National Mission on Food Processing. The scheme has the following four components:
Creation of infrastructure facilities for degree/diploma courses in food processing sector
Entrepreneurship Development Programme (EDP)
Food Processing Training Centres (FPTC)
Training at recognised institutions at State/National level
(content source: GOI Data)