Anuga FoodTec India

India’s Food Market Nears $600 Billion As Processing, Exports Gain Focus

The recently established India-EU Free Trade Agreement is anticipated to bolster international trade, while investments in plant-based proteins are on the rise.

India's food market is estimated to be worth between $550 billion and $600 billion and is growing at an annual rate of 6-7%, with the government stepping up efforts to expand food processing, increase value addition and boost agricultural exports.

India’s transition from a primary producer to a high-value global processing powerhouse was underscored by key discussions highlighting the target to double agri-food exports beyond the current US$53 billion benchmark through value addition, the strategic market access unlocked by the India–EU Free Trade Agreement, and the vital role of plant-based proteins, advanced processing technologies, and bilateral partnerships in ensuring global food security, noted government dignitaries and industry leaders on the sidelines of Anuga Select India and Anuga FoodTec India 2026 organised by Koelnmesse.

Devesh Deval, Joint Secretary at the Ministry of Food Processing Industries, said food processing is becoming increasingly important for creating greater value for farmers, attracting investment and generating employment. The sector accounts for nearly 8% of gross value added in manufacturing, according to the ministry official.

The government is looking to increase the level of processing across 16 broad food-sector categories, with cereals, meat, fruits and vegetables and dairy identified as key segments. India is the world's second-largest producer of fruits and vegetables and the largest producer of milk, the official said.

Plant-based protein is also emerging as an area of investment and innovation. The ministry is setting up a Centre of Excellence on pea protein at NIFTEM, Kundli, in collaboration with Canada to develop protein extracts and isolates from peas.

India's agricultural exports are also being targeted for a significant expansion. The country exported $53 billion worth of agricultural and processed food products in 2025-26, according to Tarun Bajaj, Senior Consultant at the Agricultural and Processed Food Products Export Development Authority (APEDA).

India aims to double these exports over the next five years while increasing the share of value-added products. Processed products currently account for nearly 30% of India's agricultural and processed food exports, Bajaj said. Greater domestic processing, he added, could support employment, improve value realisation and strengthen the food processing ecosystem.

The recently concluded India-EU Free Trade Agreement is expected to provide another avenue for the sector to expand its international footprint. The agreement is expected to cover 99.3% of EU trade value and 96.6% of India's trade value, creating a potential market of around two billion consumers.

Petros Sourmelis, Minister Counsellor and Head of the Trade and Economic Affairs Section at the EU Delegation to India, said the agreement is expected to be signed before the end of 2026 and enter into force around mid-2027. Improved market access could support greater cooperation across the food value chain, he said.

Germany and the Netherlands are also looking to deepen cooperation with India in agriculture and food processing. German and European participation at the exhibition is focused on areas including sustainable processing, packaging and technology, while India-Netherlands cooperation includes agricultural working groups and Centres of Excellence across India.

Milind Dixit, Managing Director for India and the SAARC region at Koelnmesse, said India's food processing industry is being driven by higher domestic consumption, value addition, technology adoption and greater integration with global markets. The industry was valued at around $382 billion in FY2025 and is projected to reach nearly $689 billion by FY2034, according to the company.

This year Anuga Select India and Anuga FoodTec India featured more than 1,100 exhibitors from 43 countries, with over 45,000 trade visitors.

Press Coverage By:Timesnownews.com