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It's Boom Time for India's Food Industry
Apr 30, 2007

Currently ranked number two in the world for processed food, India is poised to take over the number one spot with massive growth underway in its food industry.

With an estimated value of over $200 Million, the Indian food industry is projected to grow to $310 Billion 2015. This growth is further expected to impact the food retail industry, already in a booming phase with a 9% growth rate. These findings were published in the news published on Med India by the Confederation of Indian Industry (CII).

A CII statement in the Med India.com news revealed, "The Indian food industry - both primary and processed - is poised for a rapid growth. India has the potential to become a reliable outsourcing partner in the food sector."

Behind the changing economics of the Indian food industry are the entry of multinational, fierce growth in commodity branding, and reduced cost of technology. Determined regional players diversifying into areas with low entry barriers, boom time for Indian FMCG (Fat Moving Consumer Goods) markets, and the increasing demand for them are the primary factors fuelling this growth.

With Indian lifestyle evolving rapidly, more so in the urban areas, a sharp increase has been noted in the demand for processed food. The processed food industry in India is also competitively superior to other nations, thanks to cheap labor, government initiatives (tax holidays), and abundant raw materials.

Indians are also increasingly turning to processed food owing to more overseas travel and the entry of foreign media. These factors have affected the Indian food industry dramatically leading to surging demand for processed, ready-to-eat, and ready-to-cook food.

Growth potential for India is tremendous from its current position of number two among the world’s largest food producer to become number one. The Government also takes part of the credit with a number of plans and schemes for financial assistance in set up and modernization of food processing units, infrastructure, research and development and human resource development, apart from promotional efforts to boost growth in the processed food industry.

A research analyst at RNCOS sums up the scenario as having huge growth potential that is prompting the entry of numerous multi national companies (MNC) into India. With global supermarket leaders like Wal-Mart, Tesco and Carrefour, increased sourcing of processed foods within the country spells monetary benefits for local companies to cash in on this opportunity.

Related Market Research Reports:
Indian Food and Drinks Market: Emerging Opportunities
Indian Food, Beverages and Tobacco Market Forecast till 2011
Indian Food and Drinks Market: Emerging Opportunities