India has the potential to become a reliable outsourcing partner in the Food sector given its strengths in the primary Food Sector. The Indian Food sector is estimated to be worth over US$ 200 billion and is expected to grow to US $ 310 billion by FY 2015. It also contributes to a major part of the Retail basket. The US $ 6.1 one billion Food Retail sector is also growing at a hefty 9 per cent. FDI in India, in this segment has exceeded US $ 3 billion. A breed of foreign taste masters currently operates in India. Indian Food brands are now increasingly finding prime self space in the Retail chains across the US and Europe.
As the Food business is growing beyond borders in the new WTO regime, nations are replacing their Tariff barriers with more complicated Non-Tariff Barriers and Quality and Safety considerations have acquired centre stage with an ascending importance of the role of Standards and Conformity assessment. Different perceptions of different countries on these issues creates considerable frictions and often conflicts in accepting each countries' Standards, testing methodologies and inspection results. Therefore, it is imperative to harmonise country specific Food Regulatory regimes with the benchmarks set by well established international bodies like CODEX and SPS and TBT agreement assured under WTO.
In order to maximise opportunities and to meet the challenges of the rapidly changing global Food regulatory practices, both the Indian Food companies as well as Food service providers need to be conversant with globally emerging Food safety, quality and initiatives influencing business and trade. Accordingly, the Food regulatory regime in India, while meeting the inherent consumer safety aspects, need to move towards a more flexible and a globally aligned regime, which, on the one hand fosters speedy innovations and on the other hand, enables Indian Food businesses to achieve global competitiveness with respect to price, quality and delivery to markets and hence a higher participation in international Food trade.