‘Opportunities aplenty in India’s food processing sector’

High Commissioner to Malaysia cites country’s market size and ecosystem

KUALA LUMPUR: The size of the Indian market and ecosystem offers numerous opportunities for Malaysian businesses to enter the Indian food processing sector, said India’s High Commissioner to Malaysia, B.N. Reddy (pic).

He said India’s food processing sector is one of the largest in the world and is expected to reach US$535 billion (RM2.53 trillion (by 2025-26. In the last 10 years, India has attracted US$6 billion worth of foreign direct investment in the food processing sector.

Reddy pointed out that the food industry is a sector where India and Malaysia have close linkages. Bilateral trade in food and agri products, at US$5.8 billion, contributes to over 30% of the overall bilateral trade.

India gets large quantities of palm oil from Malaysia and India supplies rice, meat, marine products, fruits and vegetables, and other food products to Malaysia.

Reddy further said that there is a huge potential for these bilateral linkages to expand beyond trade.

“Malaysia has a strong food processing sector in cocoa and cocoa preparations, processed seafood, dairy products, preserved vegetables and fruits, processed meat, sugar and confectionery. All these are focus sectors for India’s food processing sector. The benefit of expanding into the Indian food processing sector is that there is a captive market within India for most of these products besides the export opportunities,” he said.

Reddy was speaking at the “Roadshow on Opportunities in India’s Food Processing Sector” organised by the Ministry of Food Processing Industries of India in collaboration with Invest India, the Federation of Indian Chambers of Commerce & Industry and the High Commission of India in Malaysia.

“Our objective through this roadshow is multifold. We invite Malaysian companies to set up facilities in India, procure from India, form partnerships with Indian businesses in the food sector,” he explained.

“We have several food chains and restaurants present in each other’s countries. There are numerous Indian restaurant chains that have expanded in Malaysia. A recent example in the other direction where Union Artisan Coffee is expanding into India, through its first outlet at Aerocity in New Delhi,” he noted.

Reddy also explained that the government of India has taken numerous initiatives to boost the food processing sector. Among them, setting up of mega food parks that have integrated facilities in one place, agro-processing clusters to create the necessary infrastructure for processing the agri-produce, supply-chain linkages both backward and forward, and capacity building and training.

Meanwhile, the Joint Secretary, Ministry of Food Processing Industry of India, Preet Pal Singh, said the ministry is committed to supporting all interested Malaysian entrepreneurs with their investment or sourcing interests.

He said India is one of the fastest growing major economies, with numerous investment opportunities, especially in the agrifood processing sector.

Preet Pal Singh said food processing holds a crucial role among others in reducing wastage of agricultural commodities, improving value addition, promoting crop diversification and ensuring better returns.

He also urged industry players in the Malaysian food sector to participate in the third edition of the international mega food event – World Food India 2024, from Sept 19 to 22 in New Delhi. – Bernama