Food Industry in India

Food Industry in India comprises of various segments like fisheries, plantation, fruits and vegetables and confectionery to name a few. Food Industry in India has grown over the last few years and it is expected to be worth more than US$ 310 billion by 2015.

Details of food industry in India:


India is the second biggest food producer in the world and it has the potential to become the largest producer of food in the whole world.Food Industry in India includes milk and milk products, plantation, alcoholic beverages, vegetables and fruits, fisheries, poultry and meat, grain processing, chocolates, and confectionery.

The Food Industry in India exported products worth around US$ 5.8 billion in 1998 while the total world food export stood at US$ 438 billion. This shows that although India is one of the biggest food producers in the world, it accounted for only 1.5% of the international trade in food as in 1998.

The sales turnover of the food industry in India amounted to around ` 140,000 crores yearly at the beginning of 2000. The total output of the Food Industry in India has registered growth from ` 3.09 trillion in 1993- 1994 to around ` 3.99 trillion in 2000- 2001. Further, the estimated size of the Indian food industry is around US$ 200 billion in 2007 and it is expected to increase to more than US$ 310 billion by 2015. The largest number of plants outside the United States of America that have been approved by the US Food and Drug Administration (FDA) are in India. Foreign direct investment in the Food Industry in India amounted to US$ 6.24 million in 2006 and by December, 2007, the industry had received around eleven deals that were worth US$ 158.21 million.

Reasons for the growth of the food industry in India are:

  • Increased urbanization in the country has given a boost to the food industry in India.
  • Majority of the women in the country are working as a result of which families have extra income which they are spending in buying food.
  • The standard of living in the country has improved as a result of which there has been an increased demand for food.
  • Supermarkets and malls have opened all over the country and this has helped in making shopping for food a pleasurable experience.
  • The consumers can select, inspect and pick up food items that they like in an ambience that is comfortable. This too has helped to boost the sale of food products in the country

Major companies in the food industry in India are:

  • Nestle India Ltd.
  • Kelloggs India
  • Cadbury's India Ltd.
  • MTR Foods Ltd.
  • Hindustan Lever Ltd.
  • Godrej Foods
  • ITC-Agro
  • Coca-Cola
  • Britannia

Last Updated on 3/16/2011