India is a very large country with the second highest population in the world. A big portion of this population has associated itself with the country’s food. India is lauded around the world for the number and variety of recipes it has come up with. The Indians are crazy about Food, which can be interpreted from the fact that the country has one of the highest growing Food industries in the world. The country is the prime destination for some of the major food brands around the globe and provides very favorable marketing conditions. So much so that the Indian Food market is dominated by brands from the western countries. Brands that have put our local Indian businesses and small shops out of business.
With a view towards improving the Indian industries in terms of manufacturing capabilities to provide more employment, the Indian Government has launched the ‘Make in India’ project. The project aims at 25 sectors of the Indian economy and the Food Industry will be one of the beneficiaries of the project.
Announced in the workshop “Sectoral perspectives and initiatives” in 2014, the ‘Make in India’ campaign will aim to raise the growth of Indian food industry from 10% to 25%; probably starting the campaign at the perfect time in order to ensure equal opportunities to the local Indian businesses while helping them to compete with the giant MNCs and making the MNCs start manufacturing in India at the same time to provide employment to local Indians with the required skills.
The campaign plans to establish 42 major food parks where various entrepreneurs will be able to rent out developed plots along with necessary infrastructure in these Mega Food Parks, for establishing a food processing unit or an ancillary unit. An investment of Rs. 98 billion is being raised for this purpose through public and private partnerships. Essar Infraprojects has agreed to place Rs. 50,000 crores in the food industry whereas Adani is looking to invest about Rs. 20,000 crores and the future group has planned to invest Rs. 2,000 crores in this very important sector. (source:- www.foodsafetyhelpline.com)
Other food giants like ITC, Keventers, Agro limited, Reliance, etc. have also shown interest in this project. A major Food Park is likely to be developed in Tihu, in the northeast which will be aiming to fulfill the requirements of organic food in India and abroad. The Government has also announced that the first investors will be getting the team to assist them. Incentives will also be provided. Some of the incentives include capital subsidies, tax rebates, depreciation benefits, reduced custom and excise duties for processed food and machinery.
The project is very well planned and will be established in a structured manner helping to create an equal amount of business opportunities as well as employment. Small businesses can easily find investors in order to fulfill the needs of their employees as well as achieve better results. The local Indian restaurants and fast food outlets can use the assistance that is being provided by the government in order to expand their reach and attract more and more customers. This will increase the competition in the market and brands while big names will take radical steps in order to attain supremacy which will provide even more job opportunities and help the country’s economy as well.
All in all the program is very necessary for the current situation of the market helping Indian businesses in growing with investment coming from within the country and abroad as well. This not only helps the businesses but also helps the consumers as the increase in the competition brings down the prices of the products and also brings in exciting offers which can please them, thereby ensuring that the balance of opportunity between the foreign giants and aspiring Indian businesses is perfect.