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Magazines Archives - 2007 November
India poised to become worlds prime food-sourcing hub
Story 14
INDIAS processed-food exports have increased by 194% since 2003, from 4.7 billion (US$6.88 billion) to 13.8 billion this year, while its local food processing industry is expected to expand at 9%-12% over the next few years, with fruit and vegetable processing in the country projected to grow 10% in the next three years and up to 25% by 2025.
The latest report released by KPMG India and the Federation of Indian Chambers of Commerce and Industry (FICCI) last month said the country has been positioned to turn into a prime sourcing hub as a result of its bourgeoning food trade.
The past year also saw foreign direct investment (FDI) into India double to nearly 2.1-billion in market value. In a separate report by Venture Intelligence, the F&B sector has seen about 11 private-equity deals amounting to 106.4 million in size during the period, compared with last years 4.2-million worth of business.
Pradeep Udhas, head of markets at KPMG India, sees the nation making an important mark in the global food area, both as a large producer and exporter of agricultural products, and as a very large and growing market for processed foods.
However, due to back-dated technology and inadequate infrastructure, exports in processed foods have remained relatively low-key despite the country being the worlds second-largest fruit-and-vegetable producer.
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