India's F&B sector poised for explosive growth with government support

 

New Delhi: The food and beverage sector in India is experiencing unprecedented growth, driven by the country's vast arable land, favourable government policies, and increasing consumer demand. The sector is poised for remarkable expansion, with food processing valued at a staggering Rs 75 trillion and food expenditure accounting for over 40% of consumer spend. India's thriving dairy industry, in particular, contributes 25% to the sector's growth and produces one-fourth of the world's milk, worth Rs 12 trillion.

 

The dairy industry has a huge impact on India's rural economy, with 17 million farmers across 2.35 lakh villages, 35% of whom are women, benefiting from dairy cooperatives that return 75% of the consumer rupee. The dairy industry translates to Rs 2.1 billion being channelled into the rural economy daily. Initiatives like ‘White Revolution 2.0’, which was to establish 75,000 new cooperatives by 2028-29, will further boost growth in this sector.

 

The Narendra Modi government's efforts to boost the sector are strongly supported by its refusal to compromise on US President Donald Trump's tariff deals on agriculture and dairy. Amidst all the government's efforts, platforms like Anuga FoodTec India and Anuga Select India 2025, which were kicked off in Mumbai on Wednesday, are also playing a vital role in driving innovation and sustainability in the F&B sector. The twin expos, organised by Koelnmesse India, are expected to drive growth in the F&B sector by promoting innovation, international partnerships, and trade opportunities.

The events coincide with India's food processing sector's projected rapid growth and the government's permission for 100% Foreign Direct Investment (FDI) in the F&B segment, making it a defining juncture for the industry. With over 1100 global exhibitors and 60,000 professionals expected to attend, these events are set to be a game-changer for the industry.

 

The events have attracted dignitaries from around the world, including Seetharaman Raghupathi, the Executive Director of the National Dairy Development Board (NDDB), HE Ahmad Al Ahmari, Chargé d'Affaires, Royal Embassy of Saudi Arabia, HE Labane Gideon, the Consul General of South Africa and others. These leaders have emphasised the importance of collaboration and innovation in driving growth in the F&B sector. Speaking at the ceremony, Seetharaman Raghupathi, “India’s food and beverage sector is growing rapidly, backed by 180 million hectares of arable land, food processing valued at ?75 trillion, and food expenditure making up over 40% of consumer spend.”

Despite challenges such as tariffs and sanctions, the Indian F&B industry has showcased remarkable resilience, with companies diversifying markets and rerouting supply chains. Strong policy support from the government, including initiatives like Make in India and PLI-like schemes, is creating the right ecosystem for growth, entrepreneurship, and R&D-led innovation.

Looking ahead, the growth story of the F&B sector will be shaped by consumers who are increasingly demanding clean-label, functional, and health-conscious foods. Indigenous ingredients like millets, makhana, and moringa are gaining global appeal, and the use of AI and IoT is becoming more prevalent in the industry.