Harsimrat holds meeting to boost FDI in food processing

Harsimrat holds meeting to boost FDI in food processing

To boost food processing sector, the government permitted 100% FDI in food products in June.

The Dollar Business Bureau 

Minister of Food Processing, Harsimrat Kaur Badal, held comprehensive meetings on Thursday with several departments and other stakeholders to solve issues that were impacting the smooth flow of Foreign Direct Investment (FDI) in the food processing sector. 

The minister, after the meeting, said that the discussions were to find ways to ease foreign investments in the sector and sort out the concerns related to different ministries and departments.

She further said that the concerned departments and ministries have been directed to work towards the transformation of food economy of India and at the same time to ease rules for attracting more investments across the world. 

The meeting was significant because the government is considering some specific relaxations for FDI in the food processing sector. These include allowing stores that can attract foreign investment to sell products in personal and home care segment, up to 25 percent of their overall turnover, according to sources. 

In order to boost the food processing sector in India, the government, in June, permitted 100 percent FDI in food products trading, also including via e-commerce. 

According to the policy, international retailers can sell their food products that are manufactured and produced in India.

The meeting was also attended by the representatives from the Ministry of Commerce and Industry, FSSAI, Department of Revenue, and micro small and medium enterprises (MSMEs). 

FDI in India has increased by 29 percent to $40 billion in the financial year 2015-16 as compared to $30.94 billion in the same period a year ago.

The Dollar Business Bureau - Oct 14, 2016 12:00 IST