Government allows 100 pc FDI in trading of food products

The Government on Monday allowed 100 per cent FDI in trading of food products, including through e-commerce, to boost food processing sector in the country.

The decision was taken at a meeting chaired by Prime Minister Narendra Modi.

The Government had in Budget this year announced that 100 per cent FDI would be allowed through FIPB route in marketing of food products produced and manufactured in India.

“It has now been 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,” an official statement said.

The food processing sector has attracted US $ 5,285.66 million FDI during April 2012 to December 2015 period.

Food Processing Minister Harsimrat Kaur Badal had recently said the foreign direct investment in the food processing sector could cross USD 1 billion in the next two years, helped by reforms in FDI space and streamlining of regulations by food safety regulator FSSAI.

The Government is making efforts to double the food processing level of fruits and vegetables, which currently stands at only 10 per cent.