Food processing has emerged as one of the major sunrise industries in India. The Eighth Five Year Plan envisages that exports from the food processing industry would increase from Rs.35 billion in 1992-93 to Rs.60 billion in 1996-97.
Changing lifestyles and spending patterns of the 150-200 million strong middle class has resulted in rapid expansion of the domestic market for processed foods. The increase in urban population and increasing female literacy are some of the factors that are contributing to the growth in demand for this industry.
More than a quarter of the foreign investment in manufacturing approved in 1993, was in the food processing industry. Investments worth nearly Rs.10 billion were approved for this industry during this period. In 1994, foreign investments worth nearly Rs. 7 billion were approved.
Centre for Monitoring Indian Economy, Bombay
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Last updated: May 1995.