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Sectors

Food And Beverage

Investing in India's food processing sector is highly attractive due to its robust growth trajectory and substantial government support. The sector, projected to grow at a CAGR of approximately 8% from 2022 to 2027, has demonstrated significant export potential, with processed food exports increasing from $4.9 billion in FY 2014-15 to $10.81 billion in FY 2023-24, marking a CAGR of 13%. Supported by initiatives like the Mega Food Park Scheme and the Production-Linked Incentive (PLI) scheme, the sector enhances infrastructure and connects farmers directly to markets. Additionally, the sector has attracted $12,955.90 million in FDI since April 2000, which represents 1.83% of India’s total FDI, underlining its economic importance.

The Indian food and beverage (F&B) packaged industry is expected to expand significantly, with its market size estimated to reach USD 46.3 billion by 2028, reflecting increasing consumer demand and sectoral advancements. As the world's largest producer of spices, India contributes 11.26 million tonnes of key spices annually, reinforcing its dominant position in the global market.

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Why Assam?

Investing in the agriculture and food processing sector in Assam, and by extension the broader North East region, presents a highly compelling opportunity due to the area's abundant natural resources and strategic positioning in key agricultural and extractive industries.

  • Assam is a global leader in silk production, particularly Muga and Eri silks, and it produces over 50% of India’s tea.
  • As the second-largest jute producer and a significant player in rubber production, Assam offers a diverse agricultural base conducive to varied food processing opportunities. The Northeast region’s contribution to India’s bamboo resources further underscores the potential for agro-based industries.
  • The region’s vast freshwater resources, exemplified by the Brahmaputra River basin, support extensive agricultural activities, ensuring a steady supply of fresh produce. Additionally, Assam’s contribution of about 50% to India’s onshore natural gas production can be leveraged for energy-dependent processing units.
  • The strategic geographic location of Assam, acting as a gateway to Southeast Asia, provides access to expansive markets. This is enhanced by improvements in connectivity and infrastructure under various central and state government schemes, fostering better logistics and distribution channels.
  • Various initiatives like the UNNATI Scheme of Government of India along with state-specific incentives for agribusiness and food processing, aim to reduce the cost of operations and boost profitability for businesses in this sector.

Opportunities for Growth in Assam

High-Value Tea Blending and Specialty Tea Processing

Spice Processing

Agri-Logistics and Warehousing (Cold Storage & Supply Chains)

Herbal and Medicinal Processing