$8 billion and rising: How processed food exports can unlock growth for India in global food trade
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India's agricultural exports reached $48 billion in FY24, solidifying its position as a major player in the global food trade. However, processed food exports , currently valued at $8 billion, offer significant headroom for growth, according to Deloitte & FICCI's latest report 'Spurring growth: Driving innovation and unlocking opportunities in the Indian food processing sector'.'There is potential to move up the value chain from primary commodities to value-added processed foods , which could be achieved by establishing Indian food products as a mainstream global phenomenon. Few opportunities to help enable this transition include scaling healthy Indian food products, such as millets and makhana; upgrading commodity value chains for highly exported products such as groundnut; and building strategic branding around globally trending products and India's GI-tagged products,' the report stated.Additionally, the report highlighted that processed food exports would also generate broader ecosystem benefits, including the reduction of post-harvest losses and the enhancement of employment opportunities and improved returns for farmers, all without the need for higher acreage.Faster growth in the food processing industry, according to Anand Ramanathan, Partner & Consumer Industry Leader, Deloitte South Asia, can only come if the export market is looked at more conscientiously. 'Such exports will also help in more value addition, which one can use in the domestic market. Currently we are doing a very small percentage of exports, and most of it is for the Indian diaspora. We must start looking at the needs of the wider market and start exporting to them as well,' Ramanathan toldon the sidelines of the Ficci Foodworld India 2025 event held recently in the capital.The report sheds light on the contribution of the food processing sector, which accounts for 7.7% of India's total manufacturing GVA (gross value added) and plays a critical role in generating employment, fostering rural development, and enhancing value addition. With a valuation of about $160 billion, the sector reflects India's economic rise, marked by the country's rank as the fifth-largest economy and a doubling of per capita income to Rs 1.97 lakh over the past nine years, the report highlighted. It also noted how tier II and tier III cities are fast becoming engines of economic growth due to consumption trends aligning across urban and rural India.Deloitte conducted a survey involving over 1,200 urban consumers to capture insights into prevailing behaviours, attitudes and expectations.Among the consumer trends gaining traction, protein has been highlighted as one of the strongest trends within the health food space. 'This growing awareness is leading to healthier dietary habits and a stronger focus on incorporating diverse protein sources into daily meals. According to the survey, 43% of urban respondents consider protein content very important, while 32% regard it as extremely important,' the report stated.Besides this, the report finds that Indian consumers are increasingly prioritising digestive health as a core component of overall wellness, leading to a surge in demand for processed foods that support gut health. Products enriched with probiotics and prebiotics—such as functional beverages, fortified dairy products and gut-friendly snacks—are witnessing growing adoption.The report also highlights the rise of Indian superfoods , noting that millets are gaining popularity due to their impressive nutritional profile. 'Their low Glycemic Index (GI) makes them diabetic-friendly, helping to manage blood sugar levels effectively. The urban youth population is increasingly becoming health-conscious and shifting towards millet consumption. The growth in demand is evident in urban and semi-urban areas and is expected to continue rising through 2030,' it stated.Besides millets, the rise of Indian products such as(fox nuts) is also a reflection of the growing demand for healthy and nutritious snacks in India, the report said. 'Makhana, known for its low-calorie and high-nutrient profile, has seen a significant increase in popularity due to its health benefits and versatility. This trend is part of a broader movement towards healthier eating, driven by an increasingly health-conscious consumer base,' the report added.Ramanathan says consumer demand is shifting towards clean-label, protein-rich and gut-friendly foods, driving a structural evolution in how India consumes food. 'India's agri and food processing sector is on the brink of a transformative leap, where tradition meets cutting-edge technology to build a future-ready food ecosystem. India is poised to lead the global narrative on health-driven, tech-enabled and inclusive food systems, fuelled by advancements in AI, IoT and blockchain. With the right focus, India's food processing industry can set the benchmark for inclusive, responsible growth in the global food economy.'The report suggests that companies may benefit from refining their strategies, with a greater focus on cost management and innovation to drive sector growth. 'Companies may look beyond operational improvements and explore initiatives, such as reformulation, packaging innovation and rapid prototyping of localised offerings. To stay competitive, large incumbents and emerging players may consider building structured, continuous innovation pipelines that respond swiftly to evolving consumer expectations. Collaboration between industry players, government bodies and academic institutions can further drive innovation,' it said.
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