Indian food processing industry - opportunities and challenges

The food processing industry holds huge importance for India's development as it promotes critical linkages and synergies between the two pillars of economy, namely industry and agriculture. Agricultural transformation through creation of forward and backward linkages with industry is a recently emerging phenomenon. Due to its potential for employment generation, increasing the farmer's income and export growth, the food processing industry is claiming a unique position in Indian economy. The focus on value addition in the agricultural sector is vital for inclusive development of the rural economy, as the food processing industry creates jobs, demand for agricultural raw materials leads to diversification and commercialisation of agriculture, enhancing the incomes of farmers and creating surpluses for export of agro foods. The broad-based development of the food processing industry will improve both the social and physical infrastructure of rural India. This paper explores the Indian food processing industry, its contribution to the gross domestic product (GDP), expectations from it and key drivers and challenges for it in India.