Food processing will play a central role in India’s broader economic strategy as the sector is labour-intensive and driven largely by small-scale industries, creating significant opportunities for employment generation, value addition and export growth, ITPO Chairman Jawed Ashraf said on Monday.
He was speaking at the curtain raiser press conference for the upcoming AAHAR – International Food & Hospitality Fair at Bharat Mandapam here.
The 40th edition of AAHAR, one of Asia’s premier B2B platforms for the food and hospitality industry, will be inaugurated by Union Commerce & Industry Minister Piyush Goyal on March 10. The five-day international exhibition will be held from March 10–14, 2026, at Bharat Mandapam.
Highlighting the sector's importance, Ashraf said the food ecosystem, spanning agriculture, food processing, hospitality and exports has emerged as a key pillar of India’s economy.
“This is an extremely important sector for the Indian economy because it is directly connected to the livelihoods of farmers, to small and medium-scale industry and to broader employment generation across the country,” he said.
He noted that India is among the world’s largest producers of a wide range of agricultural commodities, including dairy, sugarcane, pulses, food grains, fruits and vegetables. However, translating this strong production base into higher incomes and stronger global competitiveness requires greater value addition and stronger food processing capabilities.
“India has been one of the major producers of virtually every crop you can think of, but there are challenges in realising its full potential,” he said.
According to Ashraf, one of the major issues affecting the farming community is the high perishability of agricultural produce and the long distance between farms and consumers, particularly for small farmers.
“The distance between the farm and the fork on the table remains difficult for many farmers, especially small-scale farmers. Strengthening food processing capacity is essential not only to reduce wastage but also to increase farm incomes and generate jobs in rural India,” he said.
He added that India’s trade agreements with key markets such as the European Union, the United Kingdom and EFTA countries are expected to create new opportunities for Indian food exports, further strengthening the sector’s growth prospects.
Ashraf said that processed food and hospitality are two important sectors of the Indian economy, directly connected to the livelihoods of farmers as well as small and medium-scale industries. As India diversifies its international market partnerships through trade agreements, the food processing sector holds significant promise for the country’s economic growth.
In value terms, India’s food processing sector is estimated at around USD354 billion and accounts for about 9 per cent of the country’s manufacturing gross value added and nearly 13 per cent of organised sector employment, he said.
The sector has been growing at a compound annual growth rate (CAGR) of about 7.5 per cent over the last decade and is expected to double in value to around USD700 billion by 2030, Ashraf added.
AAHAR 2026 is expected to witness participation from over 1,700 exhibitors, including more than 140 overseas exhibitors from around 23 countries, with over one lakh business visitors expected during the five-day event. The exhibition will showcase a wide range of products and technologies across food processing, beverages, dairy, organic and processed foods, packaging solutions, cold chain technologies and hospitality equipment, providing a major platform for industry interaction and global business engagement.