India’s economic growth is now projected to fall below 8 percent this year, according to the latest forecast from the Centre for Monitoring Indian Economy (CMIE), which cited slowing growth in almost all sectors. However, industrial production and manufacturing are expected to grow by 7.5 percent, while mining and agriculture are forecasted to expand by 4.4 percent and 2.9 percent, respectively.
Performance varies considerably among India’s food industries, reported U.S. Grains Council consultant Amit Sachdev.
Aquaculture, for example, increased production by 40 percent in 2010/11, and India may see its seafood exports increase as a result.
Driven by rising purchasing power and evolving eating habits, India’s broiler industry is expanding production by 13 percent to 14 percent annually. India is the third largest egg producer in the world, and with a per capita egg consumption at just 35 per year, analysts see ample room for growth. (U.S. per capita egg consumption is 246.)
The Indian food processing industry, expected to reach $320 billion in value by 2015, faces challenges from high packaging costs, consumer preference for fresh food and a lack of infrastructure. An additional challenge is the industry’s regulatory status; it does not qualify for agriculture’s priority lending program, and the industry faces high taxes that put processed food prices out of reach for many Indian consumers.