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Scope of Food Processing sector encompasses the existing scale of operations/size of industry as well as the future potential to grow. The scope can be gauged from the following:
♤ In 2016, Food Processing industry constituted more than 8% to India’s GDP through manufacturing.
♤ During FY11–16, India's exports of processed food and related products (inclusive of animal products) grew at a CAGR of 11.74 per cent, reaching US$ 16.2 billion.
♤ The Indian food and grocery market is the world’s sixth largest, with retail contributing 70 per cent of the sales.
♤ It is the fifth largest industry in our country in terms of production, consumption, export and growth.
♤ The food industry, which is currently valued at US $39.71 billion, is expected to grow at a Compounded Annual Growth Rate (CAGR) of 11 per cent to US$ 65.4 billion by 2018.
♤ India's organic food market is expected to increase by three times by 2020.
♤ India is a country with a population of over 1.25 billion. With rising middle class having a considerable disposable income, the domestic market offers significant demand opportunities.
♤ 100% FDI is allowed in the sector. The Confederation of Indian Industry (CII) estimates that this sector has 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.
♤ India ranks no. 1 in the world in the production of milk, ghee, ginger, bananas, guavas, papayas and mangoes. Further, India ranks no. 2 in the world in the production of rice, wheat and several other vegetables & fruits. If the surplus production of cereals, fruits, vegetables, milk, fish, meat and poultry, etc. are processed and marketed both inside and outside the country, there will be greater opportunities for the growth of the sector.