India’s Food Processing Sector Powers Jobs And Growth: Deloitte-FICCI Report

India’s food processing sector has emerged as a major contributor to economic growth, accounting for 7.7 per cent of the country’s total manufacturing Gross Value Added (GVA) and creating employment for more than 7 million people across its value chain, according to a new report released by Deloitte and FICCI.

Valued at USD 160 billion, the sector is accelerating rural industrialisation, reducing post-harvest losses, and benefiting from rising rural demand, digital transformation, and supportive government policies.

The report revealed that the agriculture and food processing value chain now comprises nearly 30 per cent of India’s national food market.

Traditional Strength Meets Technology

“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 and Consumer Industry Leader at Deloitte South Asia.

He highlighted that consumer preferences are shifting towards clean-label, protein-rich, and gut-friendly foods.

“India is poised to lead the global narrative on health-driven, tech-enabled, and inclusive food systems, fuelled by advancements in AI, IoT, and blockchain,” he added.

Record Agricultural Exports And Growing Packaged Food Consumption

The report noted that India’s agricultural exports hit a record USD 48.2 billion in FY24, reflecting strong international demand.

Urban consumers are also changing their food habits, with nearly half of their food budgets now spent on packaged and prepared foods.

Rural demand remains robust, with FMCG volumes growing 6 per cent in Q3 FY24.

Additionally, Tier-2 and Tier-3 cities are fast emerging as new growth engines for the sector.

Call For Innovation And Resilient Supply Chains: FICCI Report

“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 of FICCI.

She emphasised that shifting consumer choices toward healthier foods demands greater innovation, resilience, and value addition within the industry.

Despite its strong potential, the report pointed out that supply chain inefficiencies remain a challenge.

It called for coordinated efforts by policymakers, industry leaders, and innovators to invest in smart technologies, develop robust supply chains, and scale health-oriented offerings in line with global trends.

Also Read: India Launches SPICED Scheme To Boost Sustainable Spice Exports