The food processing industry in India holds vast scope, encompassing agriculture, manufacturing, and export sectors. It adds value to raw produce, reduces wastage, and generates employment. Crucial for economic growth, it boosts farmers’ income, ensures food security, and positions India as a global player in the agri-business arena.
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Approach
- Introducing the food processing industry in India holds immense scope and significance for the country’s economy.
- Mention the Indian food industry is poised for huge growth, increasing its contribution to world food trade
- Accordingly conclude it.
Introduction
Food processing is a type of manufacturing in which raw materials are processed into intermediate foods or edible items using scientific knowledge and technology.
Bulky, perishable, and occasionally inedible food resources are converted into more usable, concentrated, shelf-stable, and pleasant meals or beverages using a variety of techniques.
The significance of the food processing industry in India is multifaceted.It improves the storability, portability, palatability, and convenience of the finished product.
Body
Scope and significance of the food processing industry in India.
- The Indian food sector ranks fifth in terms of scale, contributing almost 6% of GDP, 13% of Indian exports, and 6% of overall industrial investment in the country.
- The Indian food and grocery market is the world’s sixth largest, with retail contributing 70 per cent of the sales.
- The Indian food processing industry accounts for 32% of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth.
- It contributes around 8.80 and 8.39% of Gross Value Added (GVA) in Manufacturing and Agriculture respectively, 13% of India’s exports and 6% of total industrial investment.
- The Indian gourmet food market is currently valued at US$ 1.3 billion and is growing at a Compound Annual Growth Rate (CAGR) of 20 per cent
Here are the key aspects of its scope and significance:
The food processing Industry is significant in India, for the following reasons:
- Enhance farmer’s income by better utilisation and value addition of agricultural produce
- Minimise wastage at all stages in the food processing chain by the development of infrastructure for storage, transportation and processing of agro-food produce
- Introduce of modern technology into the food processing industries from both domestic and external sources;
- Encouraging R&D in food processing for product and process development and improved packaging
- Provide policy support, and support for creation of Infrastructure, capacity expansion/ Upgradation and other supportive measures form the growth of this sectors
- Promote export of processed food products
- Generate Employment : It provides direct and indirect employment opportunities, because it acts as a bridge between Agriculture and Manufacturing
- Reduce malnutrition: Processed foods when fortified with vitamins and minerals can reduce the nutritional gap in the population
- Crop-diversification: Food processing will require different types of inputs thus creating an incentive for the farmer to grow and diversify crops
Conclusion
The food processing industry in India has significant scope and importance in terms of economic growth, employment generation, value addition, export potential, food security, and nutrition. Continued focus and investment in this sector can unlock immense opportunities for India’s agricultural and industrial development while contributing to the country’s overall socio-economic progress.
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