The Indian food processing industry is divided into agri-products, milk and milk products, and meat, poultry and marine products. In agri-products, India is the largest producer of several fruits, it is also the second-largest producer of vegetables, rice, wheat, sugar cotton, milk and milk products.
UNIDO has identified over 60 food processing clusters in India with largest concentration in Maharashtra and Gujarat followed by Andhra Pradesh, Punjab and Orissa.
The Indian food processing industry accounts for 32% of the country’s total food market. Estimated to be worth USD 121 billion, it is one of the largest industries in India, and is ranked fifth in terms of production, consumption and exports. The industry employs 13 million people directly and 35 million people indirectly.
A largely untapped domestic market of 1000 million consumers.
300 million upper and middle class consume processed food.
300 million more consumers expected to shift to processed food by 2012.
Well developed infrastructure and distribution network.
Rapid urbanization, increased literacy, changing life style, increased number of women in workforce,rising per capita income-leading to rapid growth and new opportuni ties in food and beverages sector.
50 per cent of household expenditure by Indians is on food items.
Strategic geographic location (proximity of India to markets in Europe and Far East, South East and West Asia.