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A Thorough Guide to India's Food Export Potential: Market Size and the Latest FSSAI Regulatory Trends

2026.03.24

Article summary
According to IBEF data, India's food processing industry was about $354.5 billion in 2024 and is projected to grow to about $535 billion by the end of FY2026. Consumer food products reached $8.4 billion in 2024, and the e-commerce food market is expected to reach $8 billion by 2026. The 2025 revision of FSSAI import regulations also approved compliance with international standards such as AOAC, ISO, and Codex. In February 2025, FSSAI announced an inspection exemption for food ingredients intended for re-export.
This article is based on what we could verify As of August 1, 2026 in public records and news reports from India. India revises its tax rules and regulations frequently, and the details here may have changed since. When making an actual business decision, please check the latest information with primary sources such as the ministries responsible and local experts.

The current state and export potential of India's food market

India's food processing industry reached about $354.5 billion (₹30.498 trillion) in 2024 on IBEF's figures, and is expected to grow to about $535 billion by the end of FY2026. With the government's "Make in India" policy and the easing of FDI rules in food processing, India is accelerating its growth into a major food-exporting country.

Consumer food products reached $8.4 billion in 2024 and continue to grow steadily. India's e-commerce food market is also expected to reach $8 billion by 2026, and the potential for food exports through cross-border e-commerce is also expanding.

Latest FSSAI regulatory trends (2025-2026)

For Japanese companies involved in India's food import and export business, keeping up with the latest regulatory trends from FSSAI (the Food Safety and Standards Authority of India) is essential.

Import regulation reform (effective 2025)

Under the 2025 FSSAI import regulation reform, the testing methods for imported food have been updated. In addition to FSSAI-approved analytical methods, methods compliant with international standards such as AOAC, ISO, and Codex Alimentarius are now also recognized. The new regulation takes effect on May 1, 2026.

Changes to labeling rules

Under the labeling rule amendments announced in January 2026, the new regulations will take effect every year on July 1, with a transition period of at least 365 days from the date of notification. Japanese food manufacturers should get ahead of the schedule for label compliance.

Deregulation for food intended for re-export

In February 2025, FSSAI announced a policy exempting food ingredients imported for re-export purposes from FSSAI inspection. This has made it easier to build a business model that uses India as a food processing hub and exports processed products to third countries.

Promising items for export from India to Japan

When Japanese companies consider importing food from India, the following categories are promising.

  • Spices and seasonings: high-quality spices such as turmeric, cardamom, and black pepper
  • Organic food: certified organic superfoods (such as moringa and chia seeds)
  • Tea and coffee: Darjeeling tea, South Indian specialty coffee
  • Ready-to-eat food: India's RTE (ready-to-eat) market is growing rapidly, with a compound annual growth rate of 28.8%
  • Plant-based protein: vegetarian culture as the backdrop for plant-based food

Frequently asked questions

Is FSSAI registration mandatory when importing food from India?

FSSAI registration as an importer is mandatory. Since the procedure takes time, starting early, before trading begins, is a prerequisite. Obtaining approval in advance is one of the most important keys to success.

How does the import regulation reform change testing methods?

In addition to the conventional FSSAI-approved analytical methods, testing methods compliant with international standards such as AOAC, ISO, and Codex Alimentarius will now also be recognized. This amendment is positioned as making it easier to prepare internationally accepted test data.

Can a model of processing in India and re-exporting to third countries be considered?

FSSAI has indicated a policy of exempting food ingredients imported for re-export purposes from FSSAI inspection. This makes it easier to build a business that uses India as a food processing hub and exports processed products to third countries. It could also be considered as a base for expansion into the Middle East and Africa.

What items are promising when importing from India to Japan?

Spices and seasonings, certified organic superfoods, tea and specialty coffee, ready-to-eat food, and plant-based protein are promising categories. In particular, plant-based food built on a vegetarian culture is a highly compatible field. It is easier to proceed by starting with a category that matches your own sourcing needs.

How should we schedule our response to the new labeling rules?

The labeling rule amendments set an effective date and a transition period for the new regulations. The key is to plan label changes ahead of time, factoring in the transition period. Work backward from the effective date to prepare.

What should a Japanese company starting a food business in India tackle first?

A practical order of operations is to prioritize starting the FSSAI approval process while, in parallel, securing a local partner with strength in quality control and logistics. For foods requiring temperature control, cold chain readiness should be checked, and localizing packaging and labels into local languages should also be planned from the early stages.

Export and import strategy for Japanese companies

The following are key points for Japanese companies to succeed in India's food export and import business.

  • Advance acquisition of FSSAI approval: FSSAI registration as an importer is mandatory. Starting the process early is important
  • Local partners Securing a: partnering with a company that has strength in quality control and logistics networks
  • Building a cold chain: confirming a system to maintain quality for foods requiring temperature control
  • localization: localizing packaging and labels for the Indian market

India's food market is expected to continue growing rapidly from 2025 onward as well, making now an optimal time to enter the export and import business. digital payments the spread of B2B online transactions is also progressing.

Sources

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