Food Processing Industry in India: Current Status and Future Prospects

Abstract

Food processing is one of the key sectors of the Indian economy. It has vital linkages with agriculture and industry. The huge scope for value addition makes this sector crucial in manufacturing. The reforms of 1990 have brought significant changes in the production, processing, marketing and consumption of food products. The main objective of this paper is to assess the status and performance of the food processing industry in India in the era of globalisation and liberalisation. The study is mainly based on secondary data collected from the Ministry of Food Processing Industries, ASI and CMIE. The study found that India possesses a comparative advantage in the food processing sector with its diverse and excellent raw material base for food production and subsequent processing, skilled human resources, cost competitiveness and use of modern technology. Nevertheless, despite having promising and favourable requisites, the food processing industry has not reached its potential. The development of the industry also depends on the degree to which existing challenges and constraints are removed. With the rapidly growing urban and young population, the demand for food processing is expected to increase.