Mohit Rathod – Mumbai
The union government has eased foreign direct investment (FDI) norms in food processing and animal husbandry sectors. The government has decided to permit 100 per cent FDI under government approval route for trading, including through e-commerce, in respect of food products manufactured or produced in India. Additionally, the government has eliminated the requirement of ‘controlled conditions’ for FDI in animal husbandry, pisciculture, aquaculture and apiculture. At present, 100 per cent FDI in these activities is allowed under the automatic route under controlled conditions.
The PMO, in its statement, stated that the decision was taken with the objective of providing major impetus to employment and job creation in India.
Welcoming the move, Sagar Kurade, president, All India Food Processors’ Association, said, “I welcome the government’s decision. This will help in the development of food procesing industry and have positive effects. The move will facilitate development of retail infrastructure in the country, and also result in better utilisation of the existing infrastructure. It is also expected to reduce middlemen and benefit farmers.”
“A 100 per cent FDI in aquaculture and pisciculture is a welcome initiative by the government. This will open up the sector to new avenues of financing and access to advanced international aquaculture and cage culture technology. This is a great opportunity for Indian aquaculture companies to partner with the incoming foreign players. Currently in India, aquaculture is based largely on shrimps and low value fish. This initiative by the government will allow to expand the potential of genetically developing many more suitable species considering the demographic landscape of India,” commented Kamlesh Gupta, chairman and managing director, WestCoast group.
Baiju Nedumkery, founder, Kerala Agriculture Value Added Product Research and Developing Centre, stated that it is a good decision by the government. “Small-scale food industries are growing in India, and this move ensures a better future for them. Along with 100 per cent FDI, iniatiaves such as Make in India will also aid the growth of food sector,” he opined.
K K Sharma, managing director, Saral Food Specialities, added, “This development will benefit the food sector in a big way, by ensuring penetration of more foreign investments and by improving infrastructure. It will result in direct contact between companies and farmers, and generate employment. Indian food companies can also benefit as importing will be made easy and at a cheaper cost.”
