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India is one of the largest food and grocery markets in the world and a large consumer of food products. Despite having a rich raw material base for food products, high food price inflation is becoming a major challenge facing the country. There is a shortage of supply due to issues in the food supply chain. The food supply chain is fragmented and only seven per cent of the perishable products are being processed. To counter this, the Indian government is offering several incentives to private and foreign investors in the food processing sector reflecting the government's intention to attract investment. The large and unsaturated Indian market has attracted a number of foreign companies yet the country has not been able to be a part of their global production networks. There is a need for reforms in the food supply chain to enable India to reach out to its unrealised potential.
Given this background, this report examines the opportunities and potential for international businesses in the food supply chain of India. The report tries to make international businesses better acquainted with the Indian market by providing detailed information about the central and state governments' policies on the food supply chain. It highlights the barriers faced by international businesses in India and suggests a go-to-market strategy for international businesses. The report identifies the current and potential gains for India from the entry of foreign businesses and makes policy recommendation based on a clear understanding of the expectations and experiences of international businesses in India and global best practices.
