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India Food Processing Industry to Generate US$ 260 Billion by 2015
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India Food Processing Industry to Generate US$ 260 Billion by 2015

Nov 08, 2009
The Indian processed food industry is projected to be valued at US$ 260 Billion by 2015 from its current level of US$ 200 Billion.
 
Shrikanth Kamat, Associate Director of Ernst and Young, has said that the Indian food processing industry is expected to ride smoothly on growth track with the recovery of global economy from recession. The industry will generate revenue of around $260 Billion from the current level of $200 Billion in the next six years (by 2015), as reported by The Economic Times.
 
The Indian food sector possesses strong potential to grow at 30%-40% from the current rate of 15% in the next 10 years (by 2019). The country is expected to take its processed foods revenue from Rs 8,200 Billion in 2009-10 to Rs 13,500 Billion by 2014-15.
 
Given the fact that merely 3% of the total agricultural production and 35% of diary sector is processed in the country, there should be no hesitation to acknowledge vast potential of the Indian agro-food sector attracting new investors to make maximum of less competition.
 
RNCOS, a leading market research firm, has asserted in its report “Indian Food and Drinks Market: Emerging Opportunities” that the industry will open new horizons of developments for new players showing willingness to invest in it. The government has adopted a flexible approach to boost the flow of money in this sector by easing existing policies. Moreover, it (government) has set a target of achieving investment US$ 25.07 Billion by 2015 which will enable India to expand its contribution in the global processed food trade from an estimated 1.7% in 2008 to 3% by the end of 2015.
Realizing vast untapped opportunities in the India processed food market, a large number of MNCs have already established their feet in the market and many others are evaluating options to do the same. Venturing of MNCs at a massive scale will also open floodgates of opportunities for food processing equipment suppliers who have been facing shortage of customers.
 
According to a Research Analyst at RNCOS, “While India has huge potential to become a leader in the global food processing sector, there are a number of challenges both in the forward and backward linkages in the country. New technologies to increase the perishing life of vegetables and fruits, cold storage systems and better packaging machinery are some of the key areas where the industry and government should chart out plans for improvement. Besides, the country should consider benchmarking food quality and safety standards to boost confidence of people on these products.”
 
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