India’s fast-growing beverage market is sharply divided between segments dominated by domestic brands and those where foreign players enjoy a strong foothold, the government has said, even as it steps up efforts to build global Indian food and beverage champions.
According to the Ministry of Food Processing Industries (MoFPI), categories such as packaged drinking water, fruit juices, ready-to-drink (RTD) tea and Indian Made Foreign Liquor (IMFL) spirits are largely led by Indian brands. On the other hand, foreign companies have a greater presence in segments like carbonated soft drinks, energy drinks and premium spirits.
However, the ministry clarified that it does not maintain any specific data on the market share of domestic versus foreign beverage brands in India.
Sharing details in Parliament, Minister of State for Food Processing Industries Ravneet Singh said the government is implementing the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) with an outlay of ₹10,900 crore to strengthen Indian food and beverage brands and help them compete globally.
The scheme, launched under the Aatma Nirbhar Bharat Abhiyaan and based on NITI Aayog’s production-linked incentive framework, is being implemented for six years from 2021-22 to 2026-27. Fruit-based beverages are among the key product categories eligible for support under the scheme.
“The objective is to support food manufacturing entities with minimum sales and investment thresholds so that processing capacity can be expanded and Indian brands can build a presence in international markets,” Singh said.
The scheme aims not only to create global food manufacturing champions but also to boost employment, ensure better prices for farmers’ produce and increase farm incomes. The government estimates that the initiative will help create nearly 2.5 lakh jobs by 2026-27, largely in off-farm sectors.
Beyond PLISFPI, processed food and beverage exporters are also supported through various incentive schemes run by the Agricultural and Processed Food Products Export Development Authority (APEDA). These schemes focus on infrastructure development, quality improvement and market access and are implemented across the country, including in rural areas.
To further promote Indian food and beverage products and attract global partnerships, MoFPI organised the fourth edition of its flagship event, World Food India, in September 2025 at Bharat Mandapam in New Delhi. The mega event brought together domestic and international food processing companies, innovators, supply chain players and equipment manufacturers.
Officials said the platform was designed to showcase India’s food processing capabilities while offering foreign companies opportunities to collaborate and invest alongside Indian firms, including in the beverages segment.
With rising domestic consumption and increasing government support, policymakers believe Indian beverage brands are well placed to expand their footprint both at home and abroad.
