India’s food processing industry is accelerating along a high-growth trajectory. Currently valued at approximately USD 389 billion in 2025, the sector is projected to soar to USD 700 billion by 2030—driven by a robust CAGR of 12.5%. Strategic policy interventions, including schemes like PMKSY, PMFME, and the PLI initiative, are actively strengthening infrastructure, boosting quality control, and expanding cold chain capabilities. At the same time, these initiatives are catalysing innovation, deepening R&D, and reducing food waste.
Exports of processed food have already reached USD 12.5 billion—and are climbing rapidly. With India’s vast agricultural base and rapidly shifting consumer preferences, the industry is uniquely positioned to add significant value, enhance global competitiveness, and anchor itself as a vital engine of India’s economic growth.
In an exclusive conversation with The Interview World at the Global Food Processing Annual Summit, hosted by the Knowledge Chamber of Commerce and Industry, Dr. Prabodh Halde—Chairman of the Chamber for Advancement of Small and Medium Businesses (CASMB)—offered deep insights into the sector’s evolution. He outlined the core initiatives of CASMB, explored the transformational changes expected over the next decade, and highlighted the sector’s dual potential to drive both economic output and large-scale employment. Dr. Halde also emphasized the vast opportunity in processed food exports and shared a sharp perspective on tackling food adulteration.
Here are the key takeaways from this thought-provoking dialogue.
Q: Can you elaborate on the primary activities your organization undertakes to drive its strategic goals?
A: At the Chamber for Advancement of Small and Medium Businesses (CASMB), we champion the interests of small and medium enterprises, along with startups. While our core focus lies in supporting agribusinesses, we also extend our expertise to other sectors—particularly within the fast-moving consumer goods (FMCG) space.
Q: What key trends and factors do you believe are shaping the growth of India’s food processing industry?
A: India’s food processing industry stands at a pivotal moment. It’s not just growing—it’s maturing, and for good reason. Two key societal shifts are driving this surge. First, the traditional joint family system has largely given way to nuclear families. As people migrate to urban areas and both spouses increasingly join the workforce, the demand for convenience in the kitchen has risen sharply. Households now rely heavily on processed and semi-processed (intermediate) foods that require minimal effort to prepare.
This trend accelerated significantly after the COVID-19 pandemic. One telling indicator is the evolution of household refrigerators. A decade ago, the average Indian fridge had a capacity of about 165 litres—think of the classic Godrej models. Today, that average has jumped to over 220 litres. Why? Because consumers are storing more food, especially ready-to-cook and semi-processed items. Open any fridge and you’ll see it: eggs, butter, cheese, sauces, and a wide variety of “work-in-progress” foods waiting to be turned into quick meals.
Despite this momentum, India still lags far behind in food processing penetration. With a population of over 1.4 billion, less than 10% of fruits and vegetables undergo processing—compared to over 80% in developed countries like the US. This massive gap reveals untapped potential.
Food processing is not just an industry—it’s a lifeline for Indian farmers. Without it, they remain vulnerable to volatile market prices. Consider the recurring crises: onion prices skyrocket in Delhi, tomato prices crash in Nashik, and farmers suffer. Processing offers a solution by stabilizing prices, reducing dependence on middlemen, and ensuring hygienic, shelf-stable food for consumers year-round.
Take tomatoes as an example. Fresh tomatoes may fluctuate wildly—from ₹2 to ₹250 per kilo—depending on season and market manipulation. Yet tomato purée remains consistently priced around ₹150 per kilo. The same logic applies to bread, whose price remains relatively stable despite fluctuations in wheat prices.
In essence, food processing is the engine that powers agricultural resilience. It ensures fair returns for farmers, stable prices for consumers, and a reliable, scalable solution to India’s food security challenges. Processing is not just the future—it is the imperative.
Q: Looking ahead to the next decade, what transformative changes do you anticipate in the food processing sector, and how significant will its impact be on the Indian economy?
A: Over the next decade, India’s food processing sector will expand at a rapid pace, attracting significant investment. This momentum will be driven by two critical factors. First, India is home to over 1.4 billion people, with nearly 70% of the population directly or indirectly dependent on agriculture. Second, despite this massive workforce, agriculture’s contribution to the national GDP remains below 20%. This disparity—60% of the population contributing only 20% to the economy—is a glaring imbalance. It explains why our farmers continue to struggle financially while other sectors surge ahead and add greater value to the economy.
To correct this, we must catalyse growth within the farm and allied sectors—and food processing is the key. It transforms agricultural produce into higher-value products, stabilizes incomes, and integrates rural communities into the mainstream economy.
Moreover, investment in food processing delivers high employment returns. For every ₹1 crore invested, the sector generates approximately 10 jobs. In contrast, the same investment in IT may create just one job—often from home, with minimal infrastructure. Food processing, however, requires physical infrastructure, reliable raw material linkages, sophisticated equipment, skilled manpower, and strong marketing networks. It is a tangible, labour-intensive industry with wide-reaching economic benefits.
Unlike IT, which can scale virtually, food processing deals with real products—products that feed the nation, empower farmers, and drive inclusive growth.
In short, food processing is more than just a commercial opportunity. It’s a national imperative. It holds the power to uplift millions of farmers, create mass employment, strengthen rural economies, and boost India’s GDP. We must invest in this sector on a large scale—not just for economic gain, but for the long-term sustainability and prosperity of the country.
Q: What potential do you see for Indian players in the global market when it comes to exports of processed food?
A: During a panel discussion here, I highlighted seven to eight key sectors where India currently holds a strong position in food processing and exports. We have established dominance in several categories—most notably in fruits and vegetables, with mangoes leading the charge due to their global popularity. In the grains segment, we continue to export premium-quality basmati rice, a high-value product with robust international demand.
India is also making strides in processed food exports, including items like pasta and noodles. Additionally, our confectionery and bakery products are gaining global traction. Honey remains another strong area—we are now the world’s second-largest exporter. Meat exports, too, form a significant part of our traditional export basket.
However, while these conventional sectors continue to perform well, the real opportunity lies in expanding into high-value segments. For instance, in the growing Ayurveda and herbal bio-actives space, our current exports are largely confined to primary and secondary processed products. We have barely scratched the surface when it comes to value-added goods—particularly in the nutraceutical segment, where profit margins are significantly higher and the return value to India is far more substantial.
This gap presents a major opportunity. We must move up the value chain and aggressively invest in advanced processing capabilities for herbal and wellness products.
Moreover, India holds immense potential as a provider of food processing technology and equipment. Many countries, particularly in the developing and underdeveloped world, lack the infrastructure and expertise to build processing capabilities. With our cost-effective labour, skilled workforce, and access to land and resources, India is well-positioned to export not just food, but the very machinery and technology that enable food processing.
In short, while our traditional exports remain strong, the future lies in value addition and technology leadership. We must shift gears from being a commodity exporter to becoming a powerhouse of processed, high-value food products and innovative processing solutions.
Q: Adulteration in packaged food remains a significant health concern, often highlighted through social media campaigns. What is your perspective on this issue?
A: I don’t believe the narrative that all processed food is adulterated—it’s simply not true. Yes, we’re actively working to improve standards, but that doesn’t justify painting the entire food processing sector with the same brush. Unfortunately, some influencers—particularly those pushing negative agendas—have deliberately spread the myth that processed food is inherently harmful.
That perception is flawed and misleading.
Even the Ministry of Food Processing Industries has clarified that processed food is not bad. In fact, processing is essential. Take milk, for example. It undergoes pasteurization—a form of processing—before it reaches our homes. Without that step, the entire dairy supply chain would collapse. Farmers wouldn’t be able to sell, and consumers wouldn’t have access to safe milk. Processing enables that bridge. It ensures safety, longevity, and availability.
Processing, therefore, is not a curse—it’s a boon. It deserves respect, not suspicion.
That said, the real question is not whether processed food is good or bad—but how much of it we consume. In India, packaged and processed foods currently account for just about 8% of our overall food consumption. That’s significantly lower than in countries like the United States, where home-cooked meals have become rare, and most food is processed, reheated, and served.
In contrast, in most Indian households, food is still cooked fresh every day—by mothers, grandmothers, sisters, and home cooks. Traditional meals remain central to our culture and nutrition.
So, we must dispel the myths around processed food. It’s not about fear—it’s about balance. Processed food plays a critical role in supporting farmers, ensuring food security, and offering convenience to modern consumers. It’s time we shift the narrative from suspicion to informed appreciation.
