India is on the way to becoming an international food hub very quickly. According to the MoFPI Annual Report 2024–25, the agri-food exports of India amounted to $46.43 billion in 2023–24, accounting for 11.7% of the total exports of India. This shows that India is a strong player in the global agri-food supply chain.
On the flip side, new businesses can have a lot to gain. The products of processed foods, cereals, spices, dairy, meat, seafood, and plant-based proteins have considerable export potential. The scenario of India’s strong agricultural base and diverse production gives a huge opportunity to the startups to cater the global demand of sustainable, affordable, and diverse foods.
The road to this success will be through strategies, research, and government support through programs like PMKSY, PMFME, and PLISFPI. The guide illustrates how startups may capitalize on India’s $46 billion food export potential.
1. Current Agri-Food Export Scenario of India
India was one of the top performers in the food export sector during the year 2023-2024. Total exports for the year was $46.43 billion and exports of processed food accounted for 23.4% of this total.
India has a diverse scope in the export of food products, including cereals, which is the largest contributor. With wheat, rice, and maize, the export value exceeds 10.9 billion.
Other contributors include, spice, coffee, and tea adding 4.7 billion; meat and sea food 10 billion; processed fruits and vegetables 1.15 billion; sugar and confectionery 3.29 billion; and for dairy, honey and eggs nearly 625 million.
India is the largest produce of mils, volley, and pulse, and onion, and has the second largest produce of rice, wheat, and fruits. On the other hand, India gaining attention in the plant-based food market of EU, US, and middle east.
For the star-up sector, the value of opportunity is not limited to just the raw export of food. With the high global demand for value-added food, dehydrated powder, ready to eat, nutraceuticals, specialty ethnic foods, and other food oleoresins can be produced.
2. Agri-Food for Startups
There has been a global trend that has been positive for Startups. There has been a positive trend for startups in both, global and domestic markets. This positive trend is prevalent in Asia and Africa as there is increasing demand in these regions due to a middle class that is expanding.
Western countries also have a positive trend as the focus shifts to healthier, organic, more plant-based, and food options.
Government assistance is another factor driving the sector. Processing food in India has 100% FDI. A positive factor is that most processed foods fall within a lower GST bracket. Credit assistance from NABARD and SIDBI is tailored towards food businesses.
There is high profitability for value-added products. For instance, raw onions can be processed to obtain dehydrated onion powder, which has a revenue value of 2 to 3 times the raw onions.
There is practically no barrier for startups in some niche areas like millet-based food products, herbal teas, organic snacks, and ready-to-cook ethnic meals, which is why startups are encouraged to venture in these markets.(India’s Fast-Growing Agri-Food Exports)
3. Government Schemes Supporting Food Export Startups
- PMKSY (Pradhan Mantri Kisan Sampada Yojana)Establishes food parks, cold chains, and agro-processing clusters to lower the investment requirements.
- PMFME (Formalization of Micro Food Processing Enterprises)
- Funds 35% of the value-adding facilities by providing support.
- ODOP initiative for products like Bikaneri Bhujia, Nagpur Oranges, Varanasi Mangoes. 3.PLISFPI (Production Linked Incentive Scheme for Food Processing Industries)
- Encourages value addition in ready meals, processed fruits, dairy, seafood, and ethnic foods.
- Nivesh Bandhu Portal
- Offers digital guidance, raw material maps, and investor connections.
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4. Opportunities for Startups
There are a number of product lines with a clear export target for starters.
Cereal & Grain Processing
Startups can sell gluten-free flour, ready to cook rice and millet mixes, and other easily prepared meals which are popular in Africa, the Middle East, and South Asia.
Spices, Tea, and Oleoresins
India, the biggest spice exporter, can support startups that can produce and sell herbal teas, essential oils, oleoresins, and spice blends to the EU and USA.
Meat, Fish, and Seafood Processing
The ready to cook meal trend includes fish and frozen seafood, which are halal and especially popular in Europe, the Middle East, and South East Asia. There is demand for meat snacks as well.
Processed Fruits and Vegetables
Startups can sell more than just canned juices and freeze dried vegetables. There are also popular powders made from garlic, tomatoes, and onions.
Sugar, Confectionery, and Cocoa Products
India can support startups producing sugar free confectionery, organic jaggery, and other cocoa snacks. These items contribute to the 3.29 billion US dollars worth of confectionery, sugar, and cocoa products India exports.
Dairy, Honey, and Egg Products
There is a fitness market for organic honey, protein powders, and other eggs products that are lactose free.(India’s Fast-Growing Agri-Food Exports)
5. Import -Export Gaps: Hidden Opportunities
- India imported 31.7 billion dollars of food items in 2021, leaving room for these items to be produced domestically.
- There is also opportunity for oilseed processing, as edible oil imports were valued at 15 billion dollars.
- There is potential for local cocoa farming and craft chocolate due to the 512 million dollars worth of cocoa imported.
- The market for craft beverages, fruit wines, and local vinegar production is based on the 1.5 million dollar sales from alcoholic beverages.
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6. Motivational Stories from Start Ups
- A number of Indian Micro Small and Medium Enterprises have become global.
- LT Foods (Daawat Rice) was a very small player in the rice business and then became a world player.
- Paper Boat made packaging for Indian drinks and created a demand for exports.
- MDH and Everest have become world leaders in the spices business from small family owned operations.
From the above one clear lesson is there, which is, for startups, branding, value addition, and export should be the focus right from the begging.
7. Support from NPCS for Startups to have Successful Export Business
Niir Project Consultancy Services (NPCS) has been supporting entrepreneurs through Techno-Economic Feasibility Reports (DPR) by providing market research, demand, and analysis for the complete manufacturing process, machinery, capacity, and finance.(India’s Fast-Growing Agri-Food Exports)
NPCS helps start ups in minimizing the risk, and in building models of food processing business that are scalable for international markets.
Read More: How to Start a Food Export Business
8. Start Road Map, What Should be the First Step
- Nivesh Bandhu is the starting point for research.
- Prioritise product categories to go after, that have high potential for growth. Some of the products are cereals, spices, dairy, and ready to eat food.
- Get finance through PMKSY, PMFME, and PLISFPI.
- Invest on smart technologies like cold chains, and good packaging.
- Compliance and branding which are very strong, have to be built. FSSAI, HACCP compliance should also be there.
- Target markets include Africa, the EU, and the United States.
- NPCS should be utilized for specialized and scalable project management.
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9. Conclusion: India’s Aspiration for Global Leadership
The Agri-food industry of India is going to become a world leader indeed. The support of the government and the increase in global demand are the main factors that push startups to enter the export market. Entrepreneurs can make the most of PMKSY, PMFME, PLISFPI, and NPCS assistance to grow and effectively control their risk.
The opportunity is really broad. The opportunity is now.
Frequently Asked Questions (FAQs)
1. What is the reason for the $46B agri-food export sector to be important for startups?
A: It gives access to a global market that is not only high in demand but also very profitable.
2. What government schemes are there to support food export startups?
A: PMKSY, PMFME, PLISFPI, and Nivesh Bandhu portal.
3. What product categories offer the best export potential?
A: Rice, spices, dairy, seafood, processed fruits, millets, and plant-based foods are among others.
4. Are small startups allowed to enter the export market?
A: Products like organic snacks, herbal teas, spice blends, and dehydrated foods need low investment hence it’s possible.
5. How does NPCS support new entrepreneurs?
A: By providing assistance in the form of feasibility studies, resource lists, financial models, process design, and market research.
