India is a rich biosphere of diverse climatic zones and soil types that facilitate the growth of varied crops. As a result, the country's agro-industry is a significant contributor to the country's GDP and the primary employment source to most of the population.
As one of the largest global agro producers, the Indian agriculture industry offers immense growth opportunities for potential investors. It has attracted a consistent booming influx of cumulative Foreign Direct Investment (FDI) from global brands in recent times.
Reasons for Investing
- India is one of the top 10 global agro exporters.
- The Indian food and grocery market is the world's sixth-largest, with 70% of sales emerging from retail.
- The Indian food processing industry is one of the country's largest.
- India is the world's second-largest producer of rice, wheat, sugarcane, fruits, vegetables, and groundnuts.
- India produced 25% of the world's pulses as of the past decade.
- The native organic food sector is projected to have a CAGR of 10% in the next decade.
- Owing to government initiatives such as Pradhan Mantri Kisan Sampada Yojna, India's processed food market is expected to grow by 55% in the next five years. It allows 100% FDI under the automatic route.
Industry Growth Factors
- Robust demand due to rising income levels
- Penetration of the organized sector
- Willingness to explore contract farming
- Cost-effective mechanization of production, manufacturing, and supply processes
- Easy loan acquisition
- Privatization with an increased focus on branding
- Modernization of supply chain to reduce wastage
- Artificial Intelligence-based automation for precision farming
- The Indian government is setting up Mega Food parks to boost the agriculture sector
TIGS brings out the best solutions to assist your business in finding the right way forward to penetrate the Indian market. We are a one-stop solution to make the right trade and investment decisions in India as per your business needs.
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