AI, IoT to drive India as a global leader in food processing: Report

New Delhi, July 7 (IANS) The food processing sector in India gearing up for a sustainable future driven by technology and digital innovation, positioning the country as a global leader, according to a report on Monday.

The joint knowledge report by ASSOCHAM-PwC, launched at the Food Tech conference organised by ASSOCHAM, showed that the technologies associated with Industry 4.0 -- including artificial intelligence (AI), the Internet of things (IoT), blockchain, robotics, and automation -- are fundamentally transforming how food is processed, stored, and transported.

These innovations are improving operational efficiency, food safety, quality control, and supply chain transparency.

With the global food robotics market projected to reach $6.08 billion by 2032, the report noted that India has a significant opportunity to harness these technologies, especially as it addresses critical challenges like post-harvest losses, which cost the country an estimated Rs 1.53 trillion annually.

“India’s journey towards becoming a developed and self-reliant economy -- Viksit Bharat -- is being closely shaped by the transformation of its food processing ecosystem,” said Manish Singhal (Secretary General, ASSOCHAM).

“The vision of a proactive and sustained effort is regarded to be highly relevant to the evolving landscape of India’s food processing sector -- an industry recognised both as a key economic driver and a vital link between agriculture and the nation’s nutritional needs,” he added.

The report also outlined the hurdles faced by the industry. This includes supply chain traceability, limited processing coverage, environmental concerns, and lack of skilled manpower.

Further, it draws attention to food wastage and foodborne illnesses, which cost $936 billion and $110 billion respectively each year.

It called for enhanced compliance and safety protocols powered by digital tools to mitigate these losses and ensure better food security for all.

Meanwhile, the report also highlighted the initiatives launched by the government such as the Pradhan Mantri Kisan Sampada Yojana (PMKSY) and Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) -- which aim to strengthen the food processing ecosystem, reduce wastage and formalise the sector.

“Dialogue on emerging food processing technologies is essential to foster stakeholder collaboration for stimulating its large-scale adoption. The food processing sector in India holds tremendous potential, especially with increasing global interest and exports,” said Shashi Kant Singh, Partner - Agriculture and Food Sector, PwC India.

Changing consumer preferences are also shaping the future of the industry, showed the report highlighting a growing demand for sustainable packaging, plant-based proteins, and clean-label products -- trends that reflect rising awareness about health and environmental impact.

It called for a combined effort involving policymakers, industry leaders, academia, and startups -- supported by modern infrastructure and an enabling policy environment -- to unlock the sector’s full potential.

--IANS

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