The large and diversified production base, nascent levels of processing (at 10%), conducive policies including liberalised foreign investment rules, readymade infrastructure, changing consumer preferences and increased expenditure level on food help build a very strong case for global companies stepping up investments across the entire value chain of food processing in India and introduce new technologies.
While the food processing sector has been the 13th largest sector in India receiving FDI, with the Government making food processing in India a priority sector with various schemes and incentives to promote ease of doing business, foreign investments in the food processing sector have seen a steep rise in the recent past.
This is evident from the fact that nearly 80% of the sector’s FDI since April 2000 has been received since April 2012. FY 2017-18 has continued to display the upward positive trend of foreign investment in the sector, with USD 263 million having been invested within the first quarter of April to June 2017.
The report provides information on the foreign direct investment regulations governing the world’s 5th largest retail market and 6th largest food and grocery market.