Image Source: PT Orindo Eratec
July 30, 2018
The foreign direct investment (FDI) in the Indian food processing sector went up to 24 per cent in 2017-18 to $904.9 million as compared to the FDI inflow in 2016-17 which stood at $727.22 million. In fact, Food Processing Minister Harsimrat Kaur Badal had in February this year said FDI in the sector could touch $1 billion in 2017-18 as the World Food India 2017, organised by the ministry, attracted participation from 61 countries, 60 Global CEOs and more than 200 global companies.
According to an official data, the sector attracted FDI worth $505.88 million and $515.86 million in 2015-16 and 2014-15 respectively. The government had in July last approved American e-commerce major Amazon’s proposed $500 million investment in retailing of food products in India.
Presently, 100 per cent FDI in food processing sector is allowed through automatic route. In 2016, the Centre allowed 100 per cent FDI through approval route for retail trading, including through e-commerce, in respect of food products manufactured and produced in India.