Decline in FDI: Challenges and Government Measures in India's Food Processing Sector

Foreign direct investment (FDI) in India's food processing sector dropped by 30% in the last fiscal year to Rs 5,037.06 crore. The government has been implementing various schemes and measures to boost foreign investment and improve sector efficiency, including 100% FDI through automatic and government-approval routes.

Foreign direct investment (FDI) in India's food processing sector fell by 30 per cent in the last fiscal year, plummeting to Rs 5,037.06 crore, official data revealed.

FDI in the sector was Rs 7,194.13 crore in the 2022-23 fiscal year. As presented by the Food Processing Industries Ministry in Lok Sabha, FDI stood at Rs 5,290.27 crore in 2021-22, Rs 2934.12 crore in 2020-21, and Rs 6,414.67 crore in 2019-20.

The ministry has permitted 100% FDI through the automatic route and under the government-approval route for trading, including e-commerce, in food products. Measures to boost investment include exemption from licensing under the Industries Act, lower GST for raw and processed products, and various government schemes aimed at enhancing infrastructure and exports.

(With inputs from agencies.)