Arise in the Midst of Challenges Increasing opportunities for the food and beverage sector
The second largest producer of food in the world is India. The Indian food processing industry accounts for 32 per cent of the country’s total food market. The value of this industry is estimated to be around $121 billion, and it currently employs 13 million people directly and 35 million people indirectly. Chairman, CII National Committee on Food Processing and Chairman & Managing Director, Rasna India, Piruz Khambatta takes us through the several aspects of this industry and the hopes of making India the food factory of the worlds. Excerpts of the interview…
PROCESS: Please elaborate on the food and beverage industry in India. How does it compare to its global counterparts?
PIRUZ KHAMBATTA: The food and beverage industry in India has experienced immense growth and at the same time is continually evolving in a dynamic way. It is much more vibrant than many other markets in the world. This is one of the key reasons that many global and foreign companies are shifting their focus on the Indian market. A double digit growth is envisaged in the next decade.
However, there is a need for the Indian food and beverage sector to enhance its processes to be able to walk head to head with its global counterparts. The Food & Bev Tech 2014 Expo aims to just that. It has received International participation from partner countries like Botswana, Israel, Malaysia and Mauritius. This will help the local industry see global trends and take example from what they see.
PROCESS: What role does the Indian Food and Beverage Industry play in increasing India’s GDP?
KHAMBATTA: Indian food and beverage market is evolving rapidly and currently it’s at a nascent stage. Currently its contribution to the GDP growth is not very significant but it would definitely increase in the coming years. Also, a point to note is that the Indian food and beverage sector, even though supported by the government, it is yet to be endorsed and marketed to other countries. The GST ideally should be very low or nil for this sector, so be able to push it to the next level.
Other countries have managed to market their produce well in India, e.g., California almonds, Washington apples. We need to find ways to build the ‘Made in India’ brand and promote it well globally.