Processed F&B exports maintain momentum: IBT Newsletter June 17-22, 2024

Fiscal year 2023-24 witnessed a decline in India’s overall F&B exports on account of several factors including the Red Sea crisis, Russia-Ukraine war. But the highlight of the year was domestic restrictions imposed on critical food commodities like rice, wheat, sugar and onion owing to concerns regarding food security.

However, processed food exports remain largely robust amidst all these challenges, showcasing a YoY growth of 13%. It is important for Indian processed and packaged food exporters to further build on this positive momentum and tap emerging global market trends.

India is now recognized as a significant and rapidly expanding digital market globally. Digitalization has stimulated the rise of industries like e-commerce and the creation of cutting-edge technologies, including artificial intelligence. These developments have led to a surge in new digital consumers. For example, about 70% of all Indian Internet users have utilized at least one social networking platform. Additionally, India’s flourishing e-commerce market has around 125 million users and is projected to attract an additional 80 million online users by 2025.

As the digital landscape evolves, there is a growing need to ensure that competition remains fair and that market dynamics do not favour a few dominant players at the expense of smaller companies and consumers. The Digital Competition Bill aims to address these concerns by introducing regulations to curb the dominance of large digital companies and foster a competitive environment.

Axtel, a global food technology provider with over 3 decades of industry experience, delivers Customized Processing Solutions for the Food Industry to clients spread across multiple countries, including those in the US and Europe. As a registered member of EHEDG, Axtel offers a wide range of process solutions, covering various requirements in the food processing value chain, from handling raw ingredients to the final stages of processing, with a focus on automation, intelligence, safety, performance, and consistency.

India Business and Trade recently interacted with Ajay Desai, Executive Director of Axtel Industries, who talks about the company’s evolution from a fortitious engagement with Amul where they successfully showcased their capabilities for the first time. Further, he discusses about Axtel’s growth strategy and key technology solutions for the Indian F&B sector. 

India’s Electronics Manufacturing Services (EMS) industry is on the brink of a significant revenue surge, with projections indicating a more than doubling of revenues to reach US$ 55 billion by FY 27. This anticipated growth is fueled by increased local component sourcing and the expansion plans of global tech giants like Apple, Samsung, and Lenovo.

As India positions itself to become a key player in the global value chain (GVC) of the electronics sector, coordinated efforts across multiple ministries and ongoing engagement with industry leaders will be crucial in achieving this ambitious target.

In recent developments, the global growth rate of electric vehicles (EVs) has shown signs of deceleration. This slowdown is driven by factors such as high capital costs, election uncertainties, and a lack of quick charging infrastructure. 

But contrary to global trends, India is experiencing robust growth in its EV market. JMK Research & Analytics highlights that India’s EV sales surpassed 1.7 million units in FY 2024. With major players like TATA Motors, Mahindra & Mahindra, and BYD leading the market, and new entrants like Tesla and VinFast planning to join, India’s EV sector is poised for significant expansion.

A decrease in onion supply coupled with increasing demand has led to a significant rise in the onion prices over the past fortnight. The farmers are holding back their onion stocks, hoping for an increase in prices in the market after the rabi crop of 2023-24 declined. The intense heat and sporadic, unseasonal rain showers have impacted the supply of tomato, potato and garlic as well, thereby causing a surge in the prices of these commodities.

The government has clarified that new import restrictions on studded gold jewelry do not apply to special economic zones (SEZs). This exemption aims to address concerns raised by SEZ units. SEZs, which contributed over one-third of India’s exports last fiscal year, will continue operating under their current regulations. 

In fiscal 2024, India transitioned from a net exporter to a net importer of steel, recording a trade deficit of 1.1 million tonnes. This shift was driven by surging domestic demand, leading to increased imports from China, South Korea, Japan, and Vietnam.

Indian real estate is set for a Rs 14 trillion financing boom between 2024 and 2026, driven by construction finance and lease rental discounting (LRD). With significant growth in both residential and commercial segments, there’s a notable gap between debt required and sanctioned. Increased participation from banks and Alternative Investment Funds (AIFs) will be crucial to support developers and make financing more inclusive.

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