The 17th edition of ANUTEC – International FoodTech India held in Mumbai saw key players from industry and government highlight the immense potential in the food processing sector in India. India is on the path of remarkable progress in this sector and it is poised to become one of the major drivers of the country’s economy.
Food Processing
- The food processing sector is an important component of the overall food supply chain.
- In this, raw agricultural and livestock products are converted into processed and value-added food products suitable for consumption.
- This field encompasses a wide range of activities, technologies and processes aimed at making food products safer, more convenient and longer lasting as well as enhancing their taste and nutritional value.
- Food Processing Sector in India
- The food processing sector contributes significantly to India’s economy, accounting for 13% of exports and 6% of industrial investment.
- The region has attracted substantial Foreign Direct Investments (FDI), amounting to US$4.18 billion from 2014 to 2020, indicating the future potential of the region.
- This is expected to generate 9 million jobs by 2024. Additionally, India is set to become the world’s fifth largest food and food technology consumer by 2030 as domestic consumption will quadruple.
- This underlines the immense development potential of this region.
Government initiatives related to food processing sector
- Inclusion of food and agro-based processing units and cold chain as agricultural activity under Priority Sector Lending (PSL) norms in April 2015.
- Shifting of product-by-product approval to an ingredient and additive-based approval process by the Food Safety and Standards Authority of India (FSSAI) through notifications in the year 2016 as a measure towards ease of doing business.
- Approval of 100% Foreign Direct Investment (FDI) under the automatic route for the food processing sector.
- To set up a special food processing fund of Rs 2000 crore with the National Bank for Agriculture and Rural Development (NABARD).