Indian food processing
industry is widely recognized as a ‘sunrise industry’ having huge
potential for uplifting agricultural economy. The importance of the
sector is further enhanced by the fact that over 60 percent of the
population depends upon agricultural activities for livelihood while
contribution of agriculture to Gross Value Added is around 17 percent.
The Finance Minister in his Budget Speech in Parliament announced
permitting 100% FDI under FIPB Route for marketing including through
e-commerce of food products manufactured and/or produced in India.
100% FDI under automatic route is permitted in manufacturing activity of
food processing industry. Similarly whole/cash and carry business which
includes food products is also open to 100% FDI under automatic route.
These activities require more back-end infrastructure than the retail
To promote FDI and investment into India, Food Processing Industries
Minister Smt. Harsimrat Kaur Badal is leading official ministerial
delegations to all over the world. The initial response has been
tremendously encouraging. And a large number of foreign companies have
expressed interests to come into India to reliable local partner.
Therefore Ministry of Food Processing Industries has created an
Investment Targeting and Facilitation Desk within the ministry which
shall help them collaborate, associate, network and source from India.
The Cell shall also prepare a list of Indian companies also for their
Liberalization of FDI policy on Food Products retail trading sector
would be more infrastructure development friendly and also bring in
significant improvement in Indian agriculture sector. This would lead to
faster creation of cold storages, supply chains and would lead to
seamless integration of rural and urban economy and benefit Indian
farmers with reduced wastages and better price realization. This will
benefit farmers give impetus to food processing industry and create vast