India’s food processing sector is emerging as a powerful engine of economic growth and employment generation, contributing 7.7% to the country’s total manufacturing Gross Value Added (GVA) and supporting over 7 million jobs across its value chain, according to a new report by Deloitte and the Federation of Indian Chambers of Commerce and Industry (FICCI).
Valued at USD 160 billion, the sector plays a critical role in rural industrialization, reducing post-harvest losses, and enhancing value addition. The report credits the sector’s momentum to rising rural demand, digital integration, and government policy support. Notably, the agriculture and food processing value chain now represents nearly 30% of India’s overall food market.
Union Minister for Food Processing Industries, Chirag Paswan, recently underscored India’s potential to become a global food basket, highlighting the role of strategic investments and conducive policies in realizing this vision.
“India’s agri and food processing sector is on the brink of a transformative leap, where tradition meets cutting-edge technology to build a future-ready food ecosystem,” said Anand Ramanathan, Partner & Consumer Industry Leader, Deloitte South Asia.
He pointed to changing consumer trends, noting an increased demand for clean-label, protein-rich, and gut-friendly products. This shift, he added, is spurring a structural evolution in India’s food consumption, driven by innovations in AI, IoT, and blockchain.
The report noted a record USD 48.2 billion in agricultural exports in FY24, reflecting a strong global appetite for Indian produce. Domestically, food consumption patterns are also undergoing significant transformation. Nearly 50% of urban food spending is now on packaged and prepared foods.
Meanwhile, Tier-2 and Tier-3 cities are fast becoming key growth centers. Rural FMCG volumes grew 6% in Q3 FY24, showcasing a rebound in demand beyond metro markets.
“India’s food processing sector holds immense transformative potential, both as a driver of economic growth and as a catalyst for inclusive development,” said Jyoti Vij, Director General, FICCI. “As consumers gravitate towards healthier, more convenient options, innovation and value addition have become imperative.”
Despite its promise, the report flags supply chain inefficiencies as a persistent challenge. It advocates for greater collaboration between industry players, government bodies, and tech innovators to build resilient, tech-enabled supply chains and scale health-oriented food solutions that meet global standards.
The Deloitte-FICCI report positions India’s food processing industry as a domestic growth engine and a potential global leader in next-generation food systems, where nutrition, innovation, and sustainability converge.