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Informist, Wednesday, Apr. 1, 2026

 

MUMBAI – India's food processing industry, driven by rapid growth in output and rising demand, presents strong opportunities for US exporters, according to a report by the Foreign Agriculture Service of the United States Department of Agriculture.

 

"As India moves toward a $5 trillion GDP by FY 2028 and aims for developed nation status by 2047, its food processing sector is transforming rapidly. A growing, more affluent consumer base is driving demand for premium, safe, and convenient food solutions, shifting consumption from staple-focused diets to processed, branded, and convenience-oriented products," said the report, dated Mar. 27.  

 

India's food processing industry is one of the country's fastest-growing manufacturing segments, projected to expand from about $355 billion in 2024 to $535 billion by the end of fiscal year 2026. Often described as a "sunrise sector," it contributes an estimated 8–9% to both the manufacturing and agricultural economy and provides substantial employment in boththe 

organised and unorganised segments, the report said, adding that the market growth reflects rising disposable incomes, rapid urbanisation, and a young, convenience-oriented population that increasingly prefers branded, packaged, and value-added foods.

 

The report pointed out that domestic production still supplies most ingredient needs, but processors increasingly require highquality, specialised, and functional ingredients – particularly for health foods, convenience products, bakery items, and both traditional and premium sweets. Moreover, expansion of modern retail, ecommerce, and quick-commerce platforms, coupled with supply chain modernisation and government support (including production-linked incentive schemes), will continue to drive demand for reliable imported ingredients and create targeted opportunities for US exporters.

 

Facing the US exporters are several competitors. In specific high-growth categories, key competitors include Iran and Afghanistan for pistachios; Chile for walnuts; Argentina, Nepal, and Brazil for soybean oil; and Myanmar, Canada, Australia, and several African countries for pulses. Also, many multinational food processing companies operate across India but still source the majority of their inputs domestically, limiting immediate import penetration.

 

"Despite the competitive pressures, US suppliers' premium positioning, diversified product range, and advanced functional ingredients present opportunities to expand market share in value-added, health-oriented, and specialty product segments," the report said.  End

 

US$1 = INR 94.83 

 

Reported by Abhijit Doshi

Edited by Avishek Dutta

 

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