Food processing Industry in India is a sunrise sector that has gained prominence in the recent years. The food processing Industry is one of the largest sector in terms of production, consumption, export and growth prospect. India’s food processing Sector ranks fifth in the world in export, production and consumption. This sector covers the activities such as agriculture, horticulture, plantation animal husbandry and Fisheries. This Sector has a vital link between the agriculture and Industry segments of the economy. This paper aims to study the scope of food Processing Industry in India and its significance in Indian economy. This Paper also Describe the bottlenecks in Indian food processing Industry. This paper also discusses the government initiatives to improve the Food processing sector in India.