Food processing contribution to GVA needs to quadruple to become developed nation by 2047

A report by Grant Thornton Bharat has stated that India’s food processing sector needs to quadruple its contribution to the country’s Gross Value Added (GVA) in order to become a developed nation by 2047. Currently, the sector’s contribution to GVA stands at 1.8%, but it needs to reach 7.2% to achieve the target. The report, titled “Vikasit Bharat by 2047: Role of the Food Processing Sector,” highlights the challenges faced by the industry, including food safety, sustainability, and labor shortages. It also emphasizes the need for investments in rural infrastructure, such as grading and packing centers, storage facilities, transportation, and testing laboratories.

The report suggests leveraging digitalization and technology adoption, as well as developing a robust supply chain and integrated cold chain, to revolutionize India’s food processing landscape. The market size of India’s food processing sector is projected to reach $1,274 billion by 2027, with a compound annual growth rate of 7.3% during 2022-27.