Indian food processing industry high on growth

Tuesday, 16 October 2007, 07:00 Hrs
Printer Print Email Email
New Delhi: The Indian food processing sector is witnessing spectacular growth, with private sector investments jumping to Euro 106.4 million this year compared with Euro 4.2 million last year, says a KPMG-Ficci report.

India is well placed to take advantage of growing global food trade due to its strong agricultural base and become a sourcing hub for food products, according to the report released jointly by KPMG India and Federation of Indian Chambers of Commerce and Industry (Ficci).

"India is making an important mark in the global food arena, both as a large producer and exporter of agricultural products and as a very large and growing market for processed foods," said Pradeep Udhas, head, markets, KPMG India.

The ministry of food processing industries aims to increase India's share in the global processed food trade to three percent in the next eight years from 1.6 percent at present, the report pointed out.

In the last one year, foreign direct investment (FDI) approvals in food processing have doubled and FDI in the food sector alone is poised to breach the Euro 2.1 billion mark, the report said.

Export of processed food has also jumped from Euro 4.7 billion in 2002-03 to Euro 13.8 billion in 2006-07.

According to industry estimates, Indian processed food market accounts for 32 percent of the total food market, which is valued at Euro 67.9 billion.

The report says government subsidised food parks, tax breaks, increased FDI, proposals for public-private investment partnerships, increased spending on supply chain infrastructure, a burgeoning middle class, modern retail formats and international road shows have propelled the industry's growth in recent times.
Source: IANS
SpiceJet plans aggressive
Budget passenger carrier SpiceJet plans to aggressively expand its international networks to fl..
GST rate cut to spur Bengaluru
The realty market in India's tech hub is set to grow as lower Goods and Services Tax (GST) rate..
Fossil Group sells smartwatch
Global watch and accessories maker Fossil Group has announced to sell its smartphone technolog..
Ola raises Rs 400 cr for electric
Leading ride-hailing cab aggregator Ola on Friday said it raised Rs 400 crore from its early in..