Grant Thornton: By 2047, the share of food processing in the total value of developed countries must quadruple.

According to a report by Grant Thornton Bharat, India’s share of the food industry in the country’s gross value added (GVA) needs to quadruple to 7.2% to become a developed country by 2047. Currently, the share of the food industry in gross value is 1.8 percent. The Grant Thornton Bharat report “Vikasit Bharat by 2047: Role of Food Processing Sector” noted that future strategies need to be aligned to achieve the target of 10.4% CAGR by 2047.

India’s food industry, says report. faces many challenges such as food security, sustainability and labor shortages. India has a large agricultural sector, but it is fragmented and underdeveloped. This leads to problems such as a lack of storage facilities, poor transport infrastructure and high levels of waste. Deficiencies in supply chain infrastructure can lead to inadequate primary processing, storage and distribution capabilities, according to the report.

Implementation of Digitization

Chirag Jain, Partner, Grant Thornton Bharat, presented a comprehensive framework to support the growth of this sector, said, “The 3-I model (Innovation through Technology Convergence, Infrastructure Development and Investment) is emerging as a strategic framework for the development of the food processing industry. Digitization and the adoption of technology, especially through the Internet of Things, artificial intelligence and blockchain, will enable efficiencies and cost reductions, which are key to developing a strong infrastructure that includes a farm. level primary processing and a well-integrated cold chain. With the government driving this vision through the Food Production Linked Incentives Scheme (PLISFPI) and other schemes, the 3-I model will revolutionize the food processing landscape in India.

According to the report, important investments are needed in rural infrastructure such as sorting and packing centers, warehouses, transport and testing laboratories. Increasing agricultural production without investing in processing plants can harm farmers’ incomes and strain rural areas. It says it is important to develop strong supply chains that link farmers to processing and marketing, stressing the need to strengthen primary processing at the farm level, including sorting/sorting, packing, drying, etc., while focusing on improving value addition. . According to the report, an integrated cold chain can act as an industrial engine that can transform India’s rural economy.

866 billion dollar market

The report further states that sustained investments in the food and processing sector are key to India’s progress towards its national vision of becoming a developed and influential nation by 2047. Thanks to ongoing investments, the food and processing sector will play a central role in India’s progress towards its national vision of becoming a developed and empowered nation by 2047. The Indian food industry market size was estimated at USD 866 billion in 2022 and is projected to grow at a CAGR of 7.3 percent from 2022 to 2027 and is expected to reach $1.274 billion by 2027. The share of the food industry in the gross domestic product has increased by 27 percent in the last five years.

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