FDI in the food processing sector stood at Rs 4,430.44 crore in 2018–19, Rs 6,414.67 crore during 2019–20 and Rs 2,934.12 crore during the 2020–21 financial year
According to the government, foreign direct investment (FDI) in the food processing sector has gone down by 54 per cent to Rs 2,934.12 crore in 2020–21 as compared to the previous year.
The Minister of State for Food Processing Industries, Prahlad Singh Patel, informed that the FDI in the food processing sector stood at Rs 4,430.44 crore in 2018-19, Rs 6,414.67 crore during 2019-20 and Rs 2,934.12 crore during the 2020-21 financial year.
The FDI inflows in the food processing sector stood at USD 393.41 million in 2020–21 as against USD 904.70 million in the previous year. During the 2018-19 fiscal, the FDI inflow was USD 628.24 million, while the FDI was USD 904.9 million in 2017-18 and USD 727.22 million in 2016-17.
Patel informed us that 100 percent FDI is permitted in the sector via the automatic route.share of FDI in the food processing sector is only 1.5 percent of total FDI inflows, and the sector needs more domestic as well as foreign direct investment,” he adjoined.
The Ministry is executing a central sector scheme, Pradhan Mantri Kisan Sampada Yojana (PMKSY), since 2016-17 for the overall growth and development of the food processing sector, including boosting investment. Patel further added that the ministry is also implementing a centrally sponsored scheme, PM Formalisation of Micro Food Processing Enterprises Scheme (PM FME), to upgrade and support 2 lakh micro food processing units through credit linked subsidy based on the One District, One Product (ODOP) approach.