FDI Policy of Food Processing Sector Likely to Get Amended
The government’s allowing 100 percent FDI in domestic trading of food products has yielded results, Food Processing Industries Minister Harsimrat Kaur Badal has said, while hinting the central government is looking at permitting FDI in non-food items, along with food products, under the multi-brand retail policy.
“Figures prove that ever since this reform last year, that can transform lives of both consumers and farmers…from June onwards there has been a 40 percent increase in FDI (foreign direct investment) over last year,” Badal told BTVi channel.
“One can judge about the response that retail e-commerce majors like Amazon are committing Rs 3,500 crore over the next few years. They are also talking of diverting to the brick-and-mortar part of the retail segment,” she added.
The government last year permitted 100 percent FDI in domestic trading of food products.
The minister indicated the government’s thinking about allowing FDI in non-food items, along with food products, under the multi-brand retail policy.
“There is also no doubt that when I went abroad, a lot of the big retail chains there said they already have an existing model that is replicated everywhere,” she said.
“Under this models, these chains retail both food and HPC (home and personal care), that is non-food items, as well,” Badal added.