Indian Food Processing Sector: 5 point call to action to tap export potential
The Indian agricultural industry is a global giant in terms of production – ranking second globally and contributing to almost 10% of the global production. Despite its strong position, however, the country lags in processing and export of processed food products. Further, food processing has enormous socio-economic benefits for India – the GVA per worker in processed foods is about 4 to 4.5x that of agriculture. This, coupled with the increased global demand for processed food products, presents a strong case for the country to invest in this sector. With that context, BCG and FICCI partnered to develop this report for Food World India 2022.
This report puts in context the current status of the Indian food processing industry and deep dives into the factors affecting the competitiveness of the industry at a global level such as cost competitiveness, product quality, compliance to standard etc. Finally, the report lays down "A-R-I-S-E" - a 5-point action plan for various stakeholders to appreciate and act upon. The various tenets of the plan range from upgrading the operating model and infrastructure in use, to ensuring proper branding and compliance by the products. By acting on this suggestion, India can unlock the true potential of its processed food export industry and achieve a position of global leadership.