India has become the world's largest milk producer, with the dairy sector boasting a market size of ₹12 lakh crore and involving 1.7 crore farmers. The food processing industry is rapidly expanding, attracting investment with 100% FDI permitted. This sector has the potential to double by 2030 and enhance its global competitiveness.
Dairy and Food Processing Sector: India's dairy and food processing sector is experiencing rapid growth, with the dairy industry contributing 25% and the country producing a quarter of the world's milk. The ₹12 lakh crore market includes 1.7 crore farmers. At Anuga FoodTec India 2025, it was reported that the market for food processing equipment and packaging machinery is likely to expand significantly by 2030-2033, while the government is allowing 100% FDI.
Contribution of Technology in the Dairy Industry
Technology has played a crucial role in the dairy industry. The government and private institutions have jointly contributed significantly to empowering the dairy sector. Through new technologies and innovations, farmers' productivity is increasing, and the quality of dairy products is also improving.
At the inauguration ceremony of Anuga FoodTec India and Anuga Select India 2025 held in Mumbai, Sitaraman Raghupati, Executive Director of the National Dairy Development Board (NDDB), stated that the dairy sector contributes 25 percent to India's food and beverage sector. He mentioned that India produces a quarter of the world's milk, with a market value of over ₹12 lakh crore.
Employment for Farmers and Women
Approximately 1.7 crore farmers from around 235,000 villages are associated with the dairy sector. This includes about 35 percent women, who are a significant part of economic empowerment in rural areas. This sector not only helps increase farmers' income but also provides employment and self-employment opportunities for women.
Rapid Growth of the Food Processing Sector
Sitaraman Raghupati said that the country's food processing sector will be the fastest-growing industry in the coming years. This is supported by 180 million hectares of arable land, ₹7.5 lakh crore in food processing, and food costs accounting for more than 40 percent of consumer spending.
Global Trade and Technology-Based Development
Anuga FoodTec India and Anuga Select India 2025 saw participation from senior dignitaries from India, Saudi Arabia, South Africa, DR Congo, and Thailand, along with heads of Koelnmesse GmbH and Koelnmesse India. During the event, emphasis was placed on India's role as a hub for innovation, global trade partnerships, and technology-based development.
Milind Dixit, Managing Director of Koelnmesse Private Limited, said that Anuga FoodTec and Anuga Select India have emerged as powerful engines of change for India's food and beverage industry. These platforms provide opportunities to access new technologies, adopt sustainable solutions, and build long-term collaborations.
Market and Growth Rate
Industry leaders believe that India's food processing and ingredients sector is growing at a compound annual growth rate (CAGR) of 8.8 percent and is likely to double by 2030. Meanwhile, the Food Tech sector is outpacing global standards with a CAGR of 14 percent.
Expansion of Equipment and Packaging
The food processing equipment market in India is estimated to reach US$1.5 billion by 2033. Additionally, the packaging machinery business is also growing rapidly and is expected to exceed US$6.6 billion by 2030. This will not only strengthen the industry but also increase employment and investment opportunities.
