This chapter examines the consumption patterns in India to understand the trends in the food system, their impact on the composition of food trade, and the scale of the food processing industry. The analysis is undertaken from 1993 to 2020 based on the secondary data sources. Key takeaways from this research are: First, food constitutes 45–50% of the total expenditure of households. The major shift in the food basket is away from cereals toward primary processed fruits-vegetables-dairy products, and highly processed foods (pasta, juices, noodles), edible oils, and eating in restaurants. The structure and composition of expenditure on food have altered more among urban households than rural households. Second, the composition of food trade, though changed over the years, shows concentration in primary exports (basmati rice, oilseeds, meat) and stagnancy in the value-added processed food items. Not much change is seen in imports, except in the case of processed palm oil and edible oils, implying a greater dependence of Indians on the domestically produced raw and processed food. Third, the food processing industry has undergone a structural change and can cater to consumers’ demand for diversified products. However, the annual rate of growth in real gross value added per factory is only 2.6% in the organized food-beverage industry as compared to unorganized food enterprises at 4.1%. Lastly, the organized food industry shows strong and increasing inter- and intra-industry linkages, but its share in total national income remains low at 1.7% compared to 15.7% share of agriculture and allied activities. Higher investments in the agri-value supply chains, post-harvest management practices, and provision of adequate finance to the unorganized enterprises may allow better synergies between agriculture and the food industry to meet consumer demand and increase domestic and global competitiveness.