100 per cent FDI proposed in food processing
Mar 01 2016 , New Delhi
“Our FDI policy has to address the requirements of farmers and food processing industry. Food processing industry and trade should be more efficient. 100 per cent FDI will be allowed through FIPB route in marketing of food products produced and manufactured in India. This will benefit farmers, give impetus to food processing industry and create vast employment opportunities,” Jaitley said.
“Allowing 100 per cent FDI through FIPB for the marketing of food products produced and manufactured in India is a welcome step and it would encourage investment in food business in India,” said Future group CEO Kishore Biyani.
Food processing minister Harsimrat Kaur Badal had sought 100 per cent FDI in marketing and retail of those food products which are produced and processed in India. She argued that big companies would create infrastructure and bring the latest technology in the agriculture sector.
Currently, India permits 51 per cent FDI in the multi-brand retail. So far, the government has cleared the UK-based Tesco’s proposal in multi-brand retail. However, 100 per cent FDI is permitted in single brand retail and multi-brand wholesale business.
Walmart India may be able to expand its footprint in retail.
“The decision is very progressive and will help in reducing wastage, help in farm diversification and encourage industry to produce locally within the country,” said Krish Iyer, president and CEO, Walmart India.