India: Food Processing Ingredients

The Indian government is prioritizing the country's food processing sector. The sector has a key role in connecting Indian farmers to domestic and international markets. Despite COVID-19 related economic hardships, the sector continues to expand and has significant growth potential for processed foods, especially in Tier II, Tier III cities, and in rural areas. The hotel-restaurant-institutional (HRI) sector plays a crucial role in the economy's recovery from the pandemic. There is good potential for introducing U.S.-origin ingredients and processed products in India, especially in the snacking and consumer-oriented foods categories, however, global supply chain issues, high freight costs, and a complicated regulatory environment impose significant challenges to imports.