Agri-food Value Chain Accounts For 30% Of Indian Food Market, Valued At USD 160 Bn: Deloitte-FICCI

ENA Sectors 2025-05-22 14:44:44 New Delhi, May 22 (KNN) India's food processing industry has contributed 7.7 percent to the country's total manufacturing gross value added while supporting over seven million jobs across its value chain. According to a comprehensive analysis by Deloitte and Federation of Indian Chambers of Commerce and Industry (FICCI), the sector has reached a valuation of USD 160 billion and is emerging as a catalyst for rural industrialisation and improved agricultural efficiency. The agriculture and food processing value chain now represents nearly 30 percent of India's national food market, reflecting substantial growth driven by multiple convergent factors. The industry is simultaneously addressing critical challenges such as post-harvest losses while capitalising on evolving consumer preferences and technological advancements. The technological integration within the sector extends to artificial intelligence, Internet of Things applications, and blockchain implementations, positioning India to influence global discussions on health-focused, technology-enabled, and inclusive food systems. These developments reflect broader digitisation trends affecting multiple aspects of food production, processing, and distribution. India's agricultural export performance demonstrates the sector's international competitiveness, with exports reaching a record USD 48.2 billion in the fiscal year 2024. Domestic consumption patterns reveal significant structural changes in food purchasing and consumption behaviors. Urban consumers now allocate nearly 50 percent of their food budgets to packaged and prepared foods, representing a substantial shift from traditional fresh food purchasing patterns. This transition creates opportunities for value-added products and convenience-oriented food solutions. Additionally, Tier-2 and Tier-3 cities are emerging as new demand centers, expanding the market base beyond traditional metropolitan areas and creating distribution opportunities across diverse geographic regions. Jyoti Vij, Director General, FICCI, emphasised the sector's dual role as both an economic growth driver and a catalyst for inclusive development. She highlighted how evolving consumer preferences and health-conscious purchasing decisions are reshaping food systems, creating unprecedented requirements for resilience, innovation, and value addition throughout the supply chain. Despite positive growth indicators, the analysis identifies persistent challenges that require strategic attention. Supply chain inefficiencies continue to affect sector performance, limiting optimisation opportunities and increasing operational costs. The report advocates for enhanced collaboration among policymakers, industry leaders, and technology innovators to address these structural constraints. The path forward calls for substantial investments in smart technologies, the development of resilient supply chain infrastructure, and the scaling of health-focused product offerings aligned with global consumption trends. (KNN Bureau) 42173 https://knnindia.co.in/news/newsdetails/sectors/agri-food-value-chain-accounts-for-30-of-indian-food-market-valued-at-usd-160-bn-deloitte-ficci 2025-05-22 14:44:44 knnindia.co.in Agri-food Value Chain Accounts For 30% Of Indian Food Market, Valued At USD 160 Bn: Deloitte-FICCI