India staring at the biggest opportunity for value addition in food: former CMD, Nestle India

India’s food processing sector stands at a decisive inflection point: while the industry is already valued at over $300 billion and is projected to touch $535 billion 2026, the country is still processing only about 10% of its agricultural produce compared to 80% in developed economies, lamented Suresh Naryanan, former Chairman & Managing Director, Nestle India here on Tuesday.

Speaking at a conference on ‘Reimagining Agro-Food Processing: The AI & Robotics Revolution’ organised by the Bangalore Chamber of Industry and Commerce (BCIC) in the City, he said, this gap, of 90%, however, represented India’s biggest opportunity for value addition, employment generation and rural prosperity.

According to Mr. Naryanan, with strong government support through ₹4,064 crore budget allocations, the PLI scheme and over ₹9,227 crore in private investments, the foundation for growth was already in place.

Speaking on the occasion, C.N. Shiva Prakash, M.D, the Karnataka State Agricultural Produce Processing and Export Corporation Limited (KAPPEC) also Director on the board for the Karnataka State Coir Development Corporation, said Karnataka has emerged as a major force in micro food processing, with over 10,500 micro food processing units, funded and subsidised across the State, creating employment for nearly 1 lakh people.

The State has built a strong ecosystem for food processing under the Prime Minister’s Formalisation of Micro Food Enterprises (PMFME) scheme, with special focus on millet-based industries, he said.

Highlighting Karnataka’s millet push, Mr. Prakash said, “The State alone has more than 3,500 millet manufacturing and processing units, making it one of the strongest millet-processing ecosystems in the country. These units are supported with subsidies of up to 50% of capital investment, capped at ₹15 lakh. While the Union government contributes 35% under the PMFME scheme, Karnataka adds another 15%, making it a highly attractive model for entrepreneurs.’’

Prashant Gokhale, president, BCIC, emphasised that India must move beyond food self-sufficiency and position itself as a global food powerhouse especially in these times of geopolitical uncertainty.

“India today produces nearly 350 million tonnes of food grains and has achieved self-sufficiency for 1.5 billion people. But the next big question is: why stop at self-sufficiency and why not make food for the world. We still lose nearly 30% of our produce to wastage, representing almost 100 million tonnes of additional food potential. With AI, robotics and advanced food processing, we can significantly reduce waste, create value-added products and strengthen global food security,” he said.

The one-day conclave brought together policymakers, industry leaders, agri-entrepreneurs, technology experts and researchers to deliberate on the role of artificial intelligence, robotics, automation and innovation in transforming India’s agro-food processing ecosystem while ensuring inclusive growth for farmers and rural communities.