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Foreign Direct Investment Stimulates the Growth of Indian Processed Banana Market

“Changing taste and preference of the consumer, increasing demand for healthy and nutritional food and government initiatives will thrive the processed Banana market”, Says RNCOS

According to a new research report by RNCOS entitled, “Opportunities in Indian Banana Processing Outlook 2022”, the processed Banana market has gained huge popularity in past couple of years due to its attractive health benefits and convenience. The major growth drivers of the industry are strong government support, changing taste and preference of the consumer and high demand for healthy and nutritional product.

India is the second largest food producer in the world after China. According to government estimates for the fiscal year 2015-16, the country’s total food market valued at US$39.71 Billion and is projected to double in the next 10 years.

There is an increasing trend in the FDI inflows in Indian food processing industry as in 2015-16, the total FDI inflows in the food processing industry was INR 33.1 Billion and it has grown at CAGR 31% during the period 2010-11 to 2015-16. However, during the year 2013-14, the FDI inflows in food processing industry witness a record break value, which was 11 times higher than the corresponding value of 2012-13. According to the Department of Industrial Policies and Promotion (DIPP), the food processing industry has received around US$7.47 billion of FDI in the period April 2000 to December 2016.

Foreign direct investment (FDI) is an investment made by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country, such as ownership or controlling interest in a foreign company.

India’s banana processing industry is experiencing significant growth and boasts existing infrastructure in new Mega Food Parks around the country as well as state-of-the-art Cold Chain facilities.

A number of active measures have been taken up by the government to upgrade the Banana processing industry in terms infrastructure, human resource, and research and development.

The government has permitted 100% FDI for trading through e-commerce and manufacturing of food products through automatic route except for the items reserved for micro, small and medium enterprises (MSME). The food processing industry accounts for around 2.5% share in the total FDI inflows in India. India is looking to double food processing levels to 20%.

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RNCOS is a leading industry research and consultancy firm incorporated in 2002. As a pioneer in syndicate market research, our vision is to be a global leader in the industry research space by providing research reports and actionable insights to companies across a range of industries such as Healthcare, IT and Telecom and Retail etc. We offer comprehensive industry research studies, bespoke research and consultancy services to Fortune 1000, Trade associations, and Government agencies worldwide.  

Contact Information

  • Name: Shushmul Maheshwari

    Company: RNCOS E-Services Pvt. Ltd.

    Telphone: 24700-24700-4224700 , 120-4224700

    Address: G-199
    Sector 63