India’s food market is estimated at US$550–600 billion and is growing at around 6–7% annually, according to officials and industry leaders who highlighted the increasing importance of food processing at a recent industry event.
The discussion, held alongside Anuga Select India and Anuga FoodTec India 2026, focused on India’s transition from a primarily raw-material producer towards a higher-value food-processing economy. Officials and industry representatives highlighted processing, packaging, automation, logistics and market access as key parts of the food-value chain.
Devesh Deval, Joint Secretary, Ministry of Food Processing Industries, said the expansion of the food market is being supported by factors including economic growth and urbanisation. The sector is also being positioned as an important avenue for increasing value addition and strengthening India's participation in global food markets.
India’s agri-food exports currently stand at around US$53 billion, with industry discussions focusing on opportunities to increase this figure through greater value addition and access to international markets. The India–EU Free Trade Agreement was also identified as a potential avenue for expanding market access.
Food processing is already becoming a larger component of India’s manufacturing and agricultural economy. According to the Ministry of Food Processing Industries, the sector’s Gross Value Added increased from ₹1.34 lakh crore in 2014–15 to ₹2.24 lakh crore in 2023–24. The sector recorded an average annual growth rate of 6.55% over the nine-year period, compared with 6.06% for overall manufacturing.
Processed food is also gaining a larger role in India's exports. The government reported that the share of processed food exports in total agri-exports increased from 13.7% in 2014–15 to 20.4% in 2024–25.
Protein foods, including dairy and plant-based products, were among the areas highlighted in discussions around the next phase of India's food industry. Advanced processing technologies and greater integration across ingredients, manufacturing, packaging and supply chains are expected to support the development of higher-value food products.
The government has also increased its focus on food-processing infrastructure. For 2026–27, the Ministry of Food Processing Industries has been allocated a Budget Estimate of ₹4,064 crore, around 13.79% higher than the revised estimate of ₹3,571.57 crore for 2025–26.
For the dairy industry, the broader expansion of food processing has implications for value-added dairy products, protein ingredients, cold chains, packaging and export-oriented processing. The shift towards higher-value processing could also create opportunities to capture more value between farm production and the final consumer.
Source: Dairynews7x7 3 Oct, 2026 Read full story here
#FoodProcessing #IndianFoodIndustry #DairyIndustry #FoodExports #ValueAddition #DairyNews7x7
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