A New Dawn in Global Snack Domination!

Opportunities in the food industry are shifting, especially towards processed foods. Countries like Malaysia, the UAE and North America - prime importers of India's processed food - are adjusting to changing consumer preferences due to urbanisation and the growth of nuclear families across the world. Consequently, there's a rising demand for processed foods which prioritise convenience, consistency and quality. 

India’s food processing sector is one of the largest in the world, and its output is expected to reach $535 Bn by 2025-26. [Source: Innovations in Food Packaging: Balancing Convenience and Sustainability (investindia.gov.in)] Strategically, India's strengths in the processed food industry lie in its geography and robust supply chain, facilitating access to multiple markets and making it a key consideration for foreign direct investments. 

India, with its geographical advantages, has access to diverse markets including Southeast Asia, the Middle East, Africa, and due to its trade relations has access to markets further abroad like the United States. India is well-positioned to meet their demands for processed foods. 

India is emerging as a significant food producer, driving growth in the processed food sector. India exported finished food goods worth more than US$ 2.14 billion in 2020-21. [Source: An Overview of the Indian Food Processing Sector | IBEF] This potential is supported by the government's entrepreneurial spirit combined with policy backing. 

Creating a conducive business environment is crucial for growth and development. India and Australia are working towards this, focusing on free trade and partnerships. Comprehensive economic cooperations between nations signals a readiness for growth that will benefit the involved nations and their industries. 

India is laying the groundwork for businesses and FDIs with initiatives like food parks and cold storage units - crucial for setting up the capacity, building quality and consistency of processed foods. [Source: Food Processing Industry In India - Companies, Statistics, FDI (investindia.gov.in)] 

Blockchain technology is a promising avenue for improving the industry in India and Australia, ensuring product traceability, demand, supply, quality and consistency. This will likely attract more investment due to its reliability. 

Trade commissioners and concierge services such as Austrade play a significant role in creating business linkages. For instance, New South Wales could establish more extensive trade connections with Indian businesses and markets. Such institutions are vital for nations like India, offering opportunities for trade, connections and growth. 

Designated roles and institutes create linkages between businesses of nations, in addition to the linkages happening at the higher, government level. Further, cooperation enables nations to capitalise on each other's strengths. A prime example was Mumbai's culinary event held in October 2023, where a featured product was Australian macadamia nuts. 

The world celebrated 2023 as the Year of Millets. India's focus on millet-based products and innovations in leveraging the food produce for the food processing industry was demonstrated at the World Food India event held in New Delhi in November 2023. It was also a leading illustration of India's openness to global business. 

The variety of millet-based foods, such as millet ice cream which was showcased at the event, highlights the importance of innovation in this sector. Apart from India accounting for 41% of the total produce of millets in the world, millets are also resistant to the adverse effects of climate change during irrigation, thereby positioning it as a very attractive staple. [Source: Sustainability of India’s Millet Business | Economic and Political Weekly (epw.in)]

Consumer discernment is growing, with a focus on traceability, contaminants and nutrition. The product's brand and the nation's brand are increasingly important, emphasising the need for businesses and governments to develop a positive image and reputation. Packed full with nutrients, millets present themselves as an attractive food option for the conscious consumer as well. [Source: 11 Impressive Health Benefits of Millet - Natural Food Series]

India and Australia, despite not being neighbours, share many similarities. Their strong democratic values and the significant role of agriculture in their economies present opportunities for partnership. The large Indian diaspora in Australia - about 1 million out of a 26 million population - further strengthens this connection. Recent MoUs between the two nations covering agriculture, AI, climate change and water management, offer opportunities for mutual learning and for the sharing of solutions. [Source: India, Australia Sign Agreements To Foster Research, Student Mobility (ndtv.com)]

For instance, research on plant resilience to salinity at BHU in India addresses issues also faced in Australia, and an ongoing research in bio-friendly alternatives of fertilisers and superphosphates addresses the problem currently faced in parts of the Indian agriculture ecosystem. Collaboration in R&D across agriculture, food processing and shared interests will enable these nations and their industries to gain a competitive edge internationally.