India’s Food Processing Push: Govt Urges Corporates to Scale Investment as Sector Set for Major Growth

Food Processing Secretary A. P. Das Joshi called on India Inc. to significantly increase investment in the country’s food processing sector, stressing that India processes only 12% of its food output—far lower than global peers such as Thailand, the Philippines, the EU, and the US.

Speaking at a CII IndiaEdge 2025 session on rural prosperity and job creation, Joshi said India’s 24 lakh food units are overwhelmingly informal, with only 2% operating in the organised sector. He urged companies to help formalize the ecosystem and tap the “unlimited scope” for both domestic and foreign investment.

Joshi highlighted that processed food exports have doubled—from 11% of agricultural exports in 2014-15 to 22% today—and could reach 30–32% in the coming years. He added that labour code reforms would boost the labour-intensive food processing industry, calling the new codes “worker-friendly, industry-friendly, and growth-friendly.”

He also confirmed that decisions on HFSS (high fat, sugar, salt) regulations and Front-of-Pack Nutrition Labelling (FOPNL) are under “very active consideration” and may be finalized soon.

At the event, Rasna Group CMD and CII committee chair Piruz Khambatta urged the creation of a Citrus Development Board and a Model Food Processing Policy. He said India has the potential to contribute to “every plate in the world,” adding that supporting semi-processed foods could raise farmer incomes, cut wastage, and unlock new markets.