Government has taken steps to encourage FDI and one of the significant measures was declaring the Food Processing Sector under 100% Foreign Direct Investment (FDI) through automatic route.
The Foreign Direct Investment (FDI) inflow into the food processing sector in 2011-12 (up to February, 2012) has been $141.62 (Rs. 682.30).
FDI complements and supplements domestic investments. It brings in, apart from capital, state-of-art technology and best managerial practices, thereby providing better access to the domestic industry to foreign technology and integration into the global market. The extant policy permits FDI under the automatic route, inter alia, Food Processing Industries. Foreign Direct Investment also brings new products, new technology and improved quality in the Food Processing Sector resulting in reduction in wastage of agri products, safe and hygienic foods, higher employment and also enhancing export potential of processed foods.
This information was given by the Minister of State for Food Processing Industries, Dr. Charan Das Mahant in a written reply in the Rajya Sabha today.
11 May 2012