The agri-food sector in India has shown significant growth in recent years (+8.4% on average per year over the last five years). The sector represents about 9% of overall value added of the manufacturing industry and 12% of related employment. Over the past ten years, the sector has attracted USD 6 billion of foreign direct investment.
As revealed by the “World Food India 2024” exhibition held in Delhi at the end of September, the aim of the Indian Government is to further increase domestic production in order to meet the growing demand for food items, which is sustained both by the increased income availability of large sections of the population and by progressive urbanisation, resulting in a change in the relationship between agricultural production and food consumption. In addition, agribusiness is a strategic sector to foster growth in less industrialised areas, as well as to reduce the enormous waste of products along the supply chain that still characterises the country.
Italy has a well-established position as an exporter of various products to India, such as apples and kiwis, although, especially in the last year, the former have suffered from the competition of Polish and Greek exports, as well as Asian products. Without abandoning its presence in the Indian supply chains, Italy could tap into the dynamism of the Indian market’s great expansion by exploring the possibility for national agri-food companies to produce in India, also taking advantage of its wide availability of raw materials, particularly in the dairy and fruit and vegetable sectors, leaving the medium-high income segment to “Made in Italy” exports. Especially in the dairy sector, the presence of large Indian cooperatives, e.g. Amul, may facilitate dialogue with producers. Collaboration could also take the form of agreements between Italian agritech companies and local Indian partners.
At present, the Italian agri-food industry is well represented in India. Confectionery products account for the second largest share of agri-food exports from Italy to India, with a constantly growing trend.
