India is becoming an international food hub. The MoFPI Annual Report 2024–25 states that India’s agri-food exports made $46.43 billion in 2023–24. This constitutes 11.7% of India’s exports. This indicates India’s strong position in the global agri-food supply chain.
This sector is very opportunistic for new businesses. Processed foods, cereals, spices, dairy, meat, sea food, and plant-based proteins are highly exportable. There is a global market for sustainable, affordable, and diverse foods. With India’s strong agricultural base and wide production line, India is capable of fulfilling that market.
However, new businesses have to rely on strategies and a framework in order to leverage this opportunity. They need to identify global trends and utilize government programs like PMKSY, PMFME, PLISFPI. They also need to create products that are in demand globally.
This paper outlines how new businesses could utilize the available data, the potential for business, documented evidence, and an actionable framework available, through MoFPI, to capture India’s $46 billion potential.
1. India’s Current Agri-Food Export Landscape
In the food export sector, India performed exceptionally well in 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.
Entry barriers for some niche areas such as millet-based food products, herbal teas, organic snacks, and ready-to-cook ethnic meals are very low, which is highly favorable for startups.
3. Government Schemes for Supporting Growth of Startups
The government assists with the food processing sector with a number of initiatives as described below.
Startups are able to reduce their setup costs by participating in the agro-processing clusters created by the Pradhan Mantri Kisan Sampada Yojana (PMKSY) which constructs food parks, cold chains and, other agro-processing.
PMFME (Formalization of Micro Food Processing Enterprises) subsidizes 35% of value-adding facilites set up and also has the ODOP initiative for products like Bikaneri Bhujia, Nagpur Oranges, and Varanasi Mangoes.
Value addition is encouraged by the PLISFPI (Production Linked Incentive Scheme for Food Processing Industries) which also covers ready meals, processed fruit and, dairy seafoods, as well as ethnic foods.
Digital assistance, including guide maps of raw materials, and connections with investors is available in the Nivesh Bandhu portal.
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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.
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 start\ups, 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.
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
India’s agri-food industry is on its way to becoming a world contributor. With rapidly growing support from the government and a global demand for exports, new agricultural ventures can turn the developing agricultural economy into a diverse and valuable exports for global markets.
By employing PMKSY, PMFME, and PLISFPI, new ventures can minimize their downside while growing rapidly. With the help of NPCS, entrepreneurs will be able to make a meaningful impact on the agricultural economy and bring Indian food brands to the global stage.
The opportunity is wide. The opportunity is now.
Frequently Asked Questions (FAQs)
1. Why is the $46 billion agri-food export sector important for startups?
A. Simply because it provides them an opportunity to tap into a highly demanded and profitable market.
2. Which MoFPI schemes support food export startups?
A. PMKSY, PMFME, PLISFPI, and the Nivesh Bandhu portal.
3. Which product categories offer the best export potential?
A. Rice, spices, dairy, seafood, processed fruits, millets, and plant-based foods.
4. Can small startups also enter the export market?
A. Yes. Many such items like organic snacks, herbal teas, spice blends, and dehydrated foods need relatively low investments.
5. How does the NPCS help first time entrepreneurs?
A. NPCS helps new entrepreneurs by doing pre-feasibility studies (DPRs), compiling lists of resources (machinery lists), creating financial plans (financial models), designing processes (process flow diagrams) and analyzing (market studies).
