KUALA LUMPUR: The size of the Indian market and ecosystem offer numerous opportunities for Malaysian businesses to enter the Indian food processing sector, said India’s High Commissioner to Malaysia, B.N. Reddy.
He said India’s food processing sector is one of the largest in the world and is expected to reach US$535 billion (RM2.53 trillion) by 2025-26. In the last 10 years, India has attracted US$6 billion worth of foreign direct investment in the food processing sector.
Reddy pointed out that food industry is a sector where India and Malaysia have close linkages. Bilateral trade in food and agri products, at US$5.8 billion, contributes to over 30% of the overall bilateral trade.
India gets large quantities of palm oil from Malaysia and India supplies rice, meat, marine products, fruits and vegetables, and other food products to Malaysia.
Reddy further said that there is a huge potential for these bilateral linkages to expand beyond trade.
“Malaysia has a strong food processing sector in cocoa and cocoa preparations, processed seafood, dairy products, preserved vegetables and fruits, processed meat, sugar and confectionery. All these are focus sectors for India’s food processing sector. The benefits of expanding into the Indian food processing sector is that there is a captive market within India for most of these products besides the export opportunities,” he said.
Reddy was speaking at the Roadshow on Opportunities in India’s Food Processing Sector organised by the Ministry of Food Processing Industries of India in collaboration with Invest India, the Federation of Indian Chambers of Commerce & Industry and the High Commission of India in Malaysia.
“Our objective through this roadshow is multifold. We invite Malaysian companies to set up facilities in India, procure from India, form partnerships with Indian businesses in the food sector,” he explained.
“We have several food chains and restaurants present in each other’s countries. There are numerous Indian restaurant chains that have expanded in Malaysia. A recent example in the other direction where Union Artisan Coffee is expanding into India, through its first outlet at Aerocity in New Delhi,” he noted.
Reddy also said the government of India has taken numerous initiatives to boost the food processing sector. Among others setting up of mega food parks that have integrated facilities in one place, agroprocessing clusters to create the necessary infrastructure for processing the agriproduce, supply chain linkages both backward and forward, and capacity building and training.
Meanwhile, the Joint Secretary, Ministry of Food Processing Industry of India, Preet Pal Singh, said that the ministry is committed to support all interested Malaysian entrepreneurs with their investment or sourcing interests.
Invest India, the national investment promotion and facilitation agency of India, will reach out to gather business interests and guide them in a structured manner, he said.
Preet Pal Singh said India is one of the fastest growing major economies, with numerous investment opportunities, especially in the agrifood processing sector.
“We are one of the largest producers of milk, pulses, livestock, seafood, fruits and vegetables. In recent years, Indian agrifood sector has emerged as a high-growth and high-profit segment with immense potential for value addition, post-harvest management, especially in organic and fortified foods. Situated in a strategic location is also helping towards increasing its contribution to the world food trade every year,” he said.
Preet Pal Singh said food processing holds a crucial role among others in reducing wastage of agricultural commodities, improving value addition, promoting crop diversification and ensuring better returns.
“By building appropriate post-harvest infrastructure and improving processing levels, we can address the issues of food security and provide wholesome and nutritious food to the Indians, as well as global population. The expertise of Malaysian food industry would be crucial towards achieving this goal,” he said.
He explained that the government of India has recognised the immense potential of the food processing sector and has taken significant steps towards its development.
Proactive policy initiatives such as 100% FDI through automatic route, 100% income tax exemption on profits and gains, comprehensive package incentive schemes for creation of value-addition infrastructure, and the National Single Window Systems are being implemented to create a favourable environment for entrepreneurs of all scales, from small to large, across the entire value chain.
Preet Pal Singh also urged industry players in the Malaysian food sector to participate at the third edition of international mega food event – World Food India 2024, from Sept 19 to 22 in New Delhi.
“At this event, we are expecting the leading players in food processing sector from all over the globe to showcase their strength while the government of India along with various state governments and union territories administrations will also be highlighting myriad opportunities, available infrastructure, incentives, and benefits across the entire value chain of agrifood sectors,” he said.
“I request all industry leaders to actively participate in World Food India 2024 to take advantage, to network and build partnerships with Indian and international businesses and be part of the growth story,” he added. – Bernama
