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Israel-India
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2017
India’s Growing Food Industry
Collaborations with foreign players will bring faster growth
and improved technology
I
ndia’s food industry, which is currently
valued at US$ 39.71 billion, is expected
to grow at a CAGR of 11% to $ 65.4
billion by 2018 mainly through JVs, foreign
collaborations,industrial licenses,and 100%
export-oriented units.
Market Size
The Indian food and grocery market is the
world’s sixth largest with the Indian food
processing industry contributing 32% of
the country’s total food market. The Indian
gourmet food market is currently valued at
$ 1.3 billion, growing at a CAGR of 20 per
cent.India's organic foodmarket is expected
to increase three-fold by 2020.
The online food ordering business is
witnessing exponential growth.The organized
food business in India is worth $ 48 billion,of
which food delivery is valued at $ 15 billion.
Online food delivery players like FoodPanda,
Zomato, TinyOwl and Swiggy are building
scale through partnerships.
Investments
CII estimates that the food processing sectors
have the potential to attract $ 33 billion of
investment over the next 10 years.
•
US-based food company Cargill Inc, aims
to double its branded consumer business
in India by 2020.
•
Danone SA plans to launch 10 newproducts
in 2017.
•
KKR & Co LP, the US-based private equity
firm, plans to invest $ 77 million in dairy
company Kwality Ltd.
•
Henry Ford Health Systems (HFHS), a
US-based health and wellness group,
plans to set up 'Culinary Wellness'
branded stores across the country.
•
Mondelez International, the US-based
confectionery, food, and beverage major,
inaugurated its new manufacturing plant
in Andhra Pradesh set up for $ 190 million.
•
Gujarat Cooperative Milk Marketing
Federation (GCMMF), popularly known as
'Amul', plans to invest $ 733.6 million to
establish ten new processing plants.
Government Initiatives
Some of the major initiatives taken by the
Government of India to improve the food
processing sector in India:
•
In Union Budget 2017-18,the Government
of India has set up a dairy processing infra
fund worth $ 1.2 billion.
•
Union Budget 2016-17 proposed 100% FDI
inmarketing of food products produced and
manufactured in India.
•
The Government has relaxed foreign direct
investment (FDI) norms for the sector,allowing
up to 100% FDI in food product e-commerce.
•
The Food Safety and Standards Authority
of India (FSSAI) plans to invest $ 72 million
to strengthen the food testing infrastructure
in India.
•
The Government will set up agencies for
aquaculture and fisheries in coastal states
and export incentives for marine products.
•
The Government has approved the setting
up of 5Mega Food Parks in Bihar,Maharashtra,
Himachal Pradesh and Chhattisgarh. 42
such mega food parks across the country
are planned.
Road Ahead
Going forward, the adoption of food safety
and quality assurance mechanisms by the
food processing industry offers several
benefits. It would enable adherence to
stringent quality and hygiene norms and
thereby protect consumer health, prepare
the industry to face global competition,
enhance product acceptance by overseas
buyers and keep the industry technologically
abreast of international best practices.
Source:IBEF,Dept.of Commerce & Industry,Govt.
of India
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