The Indian food industry is one of the most rapidly growing branches of industry on the subcontinent. However, although it is the second-largest producer of food worldwide, it still faces major challenges in the processing sector. The growing consumption-oriented population is expected to drive demand higher. According to the Ministry of Food Processing Industries, the food industry is expected to grow by 14 percent in fiscal year 2008/2009, despite the financial crisis.
 
The challenges that face this branch of industry as it continues to grow include a shortage of refrigeration logistics and deficiencies in the area of hygiene. To keep up with the competition at the global level, maintaining international standards is becoming increasingly important. As a result, investing in the infrastructure is a must over the next few years. At an estimated 19.5 million tons, refrigeration capacities cover only 15 percent of annual agricultural production.
 
For this reason, the Indian government has started several initiatives to promote growth. 30 so-called mega food parks with infrastructures for packaging, transportation and refrigeration are being built to improve the situation. Construction is scheduled to begin in 2009.

Source: www.gtai.de



Indian Food Industry: Key Statistics (in Rs 000'crores)

	2002-2003	2006-2007	2010-2011*	2014-2015*
Food Industry	770	880	1,100	1,320
Food Processing Industry Size	308	374	484	660
Size of organized Sector in Food Processing Industry	57	101	162	264
% Share of Food Processing Industry in total Food Industry	40	43	44	50
% Share of organized sector in Food Processing Industry	19	27	36	40

Source: Ministry of Food Processing Industries, India
* Projections