India’s global food export share is steadily increasing as India becomes more active in the international food trade market. According to the MoFPI Annual Report 2024-25, in 2022, by the 2022 India food exports accounted for 2.55 percent of world food exports while food imports accounted for only 1.66 percent.
This makes India a strong net food exporter. Additionally, India’s position in international supply chains is improving.
During 2023-2024, India’s agri-food exports came to $46.43 billion, making India a significant food supplier to various nations. That said, in terms of India’s agri-food exports’s potential, India’s food exports remain at a relatively low position.
This absence of food export is a potential for start-up companies to develop export-oriented entrepreneurship, especially in food processing, specialty foods, and higher-value foods.
The international trade market is seeking nutritious, sustainable, ethnic foods, and plant-based foods. With innovative processing, packaging and food products, India can meet the world’s anticipated food market.
Read More: How to Tap into India’s $46 Billion Agri-Food Export Opportunity
India’s Projected Trade in Food & Agriculture
India’s food trade position relative to the globe has improved over the years, and export numbers show a positive and growing trend. Comparatively, imports of food remain at a lower number. This trend of international trade in food demonstrates that India has a strong base in agriculture and growing potential in food processing.(India Global Food Export Share)
India’s processed food exports reached USD 10.88 billion in 2023–24. Exported items include rice, spices, seafood, sugar, dairy, and processed fruits and vegetables. India is the largest global exporter of rice and a key exporter of spices and seafood.
On the other hand, India imported USD 31.7 billion of food products such as fruits, nuts, and beverages. India also imported dairy, cocoa, and value-added dairy products. Some of such products have potential for local production and import substitution.
Read Our Project Report: Click Here
Why India Can Increase Its Global Export Share
India’s agricultural sector is a natural asset. It India has one of the largest agricultural production of rice, wheat, sugarcane, milk, fruits, and vegetables. At the same time, the country’s climate is also very diversified allowing multi-crop production throughout the year.(India Global Food Export Share)
The government supports food processing with the PMKSY, PMFME, PLISFPI, and ODOP programs which include assistance on financing, food processing infrastructure, and training.
India’s supply chains are also improving with Mega Food Parks, cold chains, and port-based food processing. There is a rising global demand for healthy, functional, and plant-based foods of Indian origin. This further improves prospects for exports.
High-Potential Export Opportunities for Startups
New ventures can pursue numerous product categories with excellent worldwide visibility and high profit margins.
Rice and Specialty Grains
India leads the world in rice exports. Startups can also prepare and export ready-to-eat rice trays, millet mixes, and fortified rice. These products are in demand in Africa, the Middle East, and Asia.
Spices and Value Readied Seasonings
India leads the world in spice exports. Startups can prepare and export spices in the form of blended masalas, curry pastes, seasoning cubes, and ready-to-eat sauces. These products are in demand in Europe, the United States, and Southeast Asia.(India Global Food Export Share)
Dairy and Nutraceutical products
India has the highest milk production in the world, however, its exports in dairy products are very low. Startups can concentrate on ready-to-eat Whey protein, lactose-free dairy products, and ghee, and Sports Nutritional Powders.
Seafood and Aquaculture
India exported USD 6.12 Bn worth of seafood in 2023-24. Startups can prepare and export ready-to-eat shrimp packs, fish fillets, snacks made from seaweeds, and marine nutraceuticals.
Processed Fruits and Vegetables
There is demand in the GCC and East Asia for processed food made from fruits and vegetables. Startups can establish facilities for freeze-drying fruits, processing fruits in the form of pulps and purees, dehydrating to produce powders, and canning fruits.
Plant Based and Functional Foods
There is increasing global demand for vegan snack food, kombucha, plant protein drinks, and functional powders. Under PLISFPI incentives, Startups can work on innovations.
Cocoa Based Businesses in India
India doesn’t export cocoa but does import it while there is potential to export products such as cocoa bean-to-bar chocolates, cocoa mixes and spreads.
Read More: The Agriculture Sector in India: Industry Overview and Business Opportunities for Agritech
Government Initiatives Supporting Export Startups
Different government initiatives targeted towards food processing and export are beneficial to startup companies.
- PMKSY provides support for cold chains, mega food parks and processing clusters.
- PMFME facilitates a 35 percent subsidy for micro units and encourages export branded ODOP products.
- PLISFPI promotes value added processed food products and provides monetary support for it.
- APEDA provides market, promotion and certification assistance to export.
- NABARD and state policies provide food units soft loans and grants.
These initiatives assist in risk mitigation and sustain long term growth.
How NPCS Supports Export-Focused Start-Ups
Niir Project Consultancy Services (NPCS) offers support to entrepreneurs setting up food processing units and export oriented businesses. NPCS prepares market survey cum detailed techno-economic feasibility reports (DPRs) designed to assist startups in defining their project`s objectives and scope.
These include the production processes, product mix, raw material and machinery, capacity, market and financial plan. NPCS provides support to entrepreneurs in areas of compliance and other regulations.
Startups can minimize their risks and focus on building successful export oriented units with this level of support.
Read Our Book: Click Here
Actionable Steps for Startup Founders
- Export potential can be identified through simple methods available to founders.
- The district-level ODOP data must be consulted to identify the most promising product cluster.
- Investment in technology that allows products to have extended shelf-life, such as freeze-drying and cold chain management, is critical.
- Focus on product development as it is in high demand and is often expected in international markets.
- It is imperative that the business conforms to international quality standards, such as HACCP and ISO certification.
- It is important to invest in marketing by creating brand products that celebrate Indian culture.
- The most effective initial market entry strategy is contract manufacturing for experienced exporters.
- International trade can be simplified through online platforms such as Amazon Global, in addition to specialized B2B ecommerce platforms.
The outlined methods enable the transformation of a business idea into a functioning export business.
Find the Best Idea for Yourself With our Startup Selector Tool
Conclusion: India’s Path to Global Food Export Leadership
With 2.55 percent of global food exports, India has room to grow. India has the potential to increase exports to 4-5 percent by the year 2030 with the government backing and substantial demand. Demand and abundant raw materials.
Startups focusing on value addition on rice, spices, dairy, seafood, processed fruits and plant-based foods will contribute most to this growth. India has the potential to become a leading exporter in high value and branded food products with the help of MoFPI Schemes, and APEDA, along with NPCS expert assistance.
The moment is right and the opportunity is vast.
Frequently Asked Questions (FAQs)
1. Why is India’s 2.55 share in global food exports important?
A. It signifies that India is a player in the global market. However, it has a lot of room to grow. Hence there is scope for new exporters.
2. Which food categories have the most potential for exports?
A. There is a high global demand for rice, spices, dairy, seafood, processed fruits and plant-based foods.
3. How do government schemes benefit food export startups?
A. PMKSY, PMFME, PLISFPI, and APEDA schemes provide financial assistance, aid with certification, and support in developing processing infrastructure.
4. Are Small Startups Able to Start Exporting Food Products?
A. Of course. Many product categories like millet snack foods, herbal teas, spice mixtures, and dehydrated foods all have low investment initial costs, and do well overseas.
5. What Support Does NPCS Offer to New Entrepreneurs?
A. NPCS offers a range of support including feasibility study completion, assistance with machinery selection, financial planning, guidance on compliances, and end to end project assistance.
