India’s food processing sector is set for significant expansion, with its market size projected to more than double from $307 billion in 2023 to $700 billion by 2030, according to a report by the PHD Chamber of Commerce and Industry (PHDCCI). The report, titled ‘India’s Agricultural Transformation: From Food Scarcity to Surplus’, highlights the rapid growth of the agriculture and food processing industries, driven by increasing demand for processed food products.
Exponential Growth in the Food Processing Sector
Beyond 2030, the report forecasts continued expansion in India’s food processing industry, with the market expected to reach $1.1 trillion by 2035, $1.5 trillion by 2040, and $2.15 trillion by 2047. The sector’s robust trajectory underscores India’s growing consumer demand, advancements in agricultural technology, and government support for food processing infrastructure.
The agriculture and allied sectors have demonstrated strong and consistent growth, maintaining an average growth rate of 3.9% between 2013-14 and 2023-24. Even during the pandemic, the sector sustained a 4% growth rate, reinforcing its role as a pillar of India’s economic resilience.
Agriculture Growth and Rising Exports
India’s transformation from a food-scarce nation to a food-surplus powerhouse has been instrumental in strengthening its economy. Agricultural growth for 2024-25 is projected at 3.8%, further supporting India’s ambition of becoming a Viksit Bharat.
Alongside domestic expansion, agriculture exports have experienced substantial growth, increasing from $39 billion in 2013-14 to over $52 billion in 2022-23. This upward trend highlights India’s strengthening position in global agricultural trade and its potential to emerge as a key exporter of processed food products.
Also read: India’s E-Commerce Market to Hit $550B by 2035
A Key Driver for India’s Economic Future
The rapid growth of agricultural exports places the sector at the heart of India’s economic transformation. As investments in food technology, supply chain efficiency, and value-added processing continue to rise, India’s food processing sector will play a crucial role in job creation, rural development, and global trade expansion.
With policy support, infrastructure improvements, and increasing private sector participation, India’s food processing industry is set to become a trillion-dollar powerhouse, unlocking new economic opportunities and reinforcing its position as a global leader in food production and exports.
