India’s food market: $600 bn estimate; 7% CAGR — from primary producer to high-value global processing powerhouse

India's food market is estimated to be worth between $550 billion and $600 billion and is growing at an annual rate of 6-7 per cent, Devesh Deval, Joint Secretary at the Ministry of Food Processing Industries, reportedly said on Friday.

Speaking at the three-day inaugural function of Anuga Select India and Anuga FoodTec India 2026 organised by Koelnmesse, Deval said, according to PTI on Tuesday, that the government is focusing on increasing food processing levels and ensuring greater value reaches farmers, with effective implementation of its programmes and incentives aimed at strengthening the processing ecosystem.

He said food processing creates greater value for farmers, attracts investment and is the second-highest employment creator in manufacturing, accounting for nearly 8 per cent of gross value added in manufacturing.

The government's focus is to increase the level of processing across all 16 broad sub-sectors and ensure greater value reaches farmers, he said, as per PTI.

"Cereals, meat, fruits and vegetables and dairy remain key segments, with India being the world's second-largest producer of fruits and vegetables and the largest producer of milk. Fisheries, marine products and animal husbandry also receive dedicated policy attention, while healthier and plant-based foods are emerging areas of innovation," he added.

Exports worth $53 billion

Experts said India was moving from a primary producer to a high-value global processing powerhouse to double agri-food exports beyond the current US$53 billion benchmark through value addition and market access unlocked by the India–EU Free Trade Agreement.

“India exported US$53 billion worth of agricultural and processed food products in 2025–26, placing the country among the top 10 exporters globally," Dr Tarun Bajaj, Senior Consultant, Agricultural and Processed Food Products Export Development Authority (APEDA), was quoted as saying by a report.

"Despite geopolitical challenges, exports continue to grow, with rice, meat, marine products, coffee and tea among the leading products, while processed food exports are steadily increasing," Bajaj said.

India-EU FTA ‘an economically significant milestone’

On the sidelines of the event, government dignitaries and industry leaders said that the strategic market access unlocked by the India–EU Free Trade Agreement, and the vital role of plant-based proteins, advanced processing technologies, and bilateral partnerships in ensuring global food security.

Martina Englhardt-Kopf - Vice Minister, Ministry of Food and Agriculture, Federal Republic of Germany, said, “ANUGA Select India provides an important platform for strengthening cooperation between India, Germany and Europe across food, agriculture and technology."

"The conclusion of the India–EU Free Trade Agreement is therefore an economically significant milestone, creating a market of around two billion people and liberalising trade covering 99.3% of EU and 96.6% of India’s trade value," Kopf said.

Meanwhile, Silvio Erkens, Minister for Food Security, Fisheries & Horticulture, Netherlands, said, “India and the Netherlands are strong and long-standing partners in agriculture and food, with significant opportunities to collaborate as feeding a growing global population with nutritious, high-quality food becomes more challenging."

Erkens said India is an agricultural powerhouse, while the Netherlands, with around 18 million inhabitants, is the world’s second-largest food exporter.