Food industry to reach $258 bn by FY15

MUMBAI: The country's food industry-size is expected to reach USD 258 billion by FY 15 from the current level of USD 181 billion.

India is one of the world's largest producer as well as consumer of food products, with the sector playing an important role in contributing to the development of the economy.

"The food processing industry in India is one of the largest in terms of production, consumption, export and growth prospects. The food industry is expected to reach USD 258 billion by FY 15 and USD 318 billion by FY 20 from the current level of USD 181 billion," Ficci Food Processing Committee Chairman, Shrijeet Mishra, said at a 'Foodworld India 2009' conference here today.

Domestically, the spending on food and food products amounts to 21 per cent of India's GDP and constitutes the largest portion of the Indian consumers spending-more than a 31 per cent share of wallet. As much as 70 per cent of the current food spending by the Indian consumer is on agri-products.

Buoyed by a favourable policy environment and demand push impact of a young consuming-class with growing disposable incomes, India offers significant investment opportunities in the food and agri-business, Mishra said.