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FDI in Food Processing Sector Surges 44 pc to USD 904.7 mn in 2019-20

    13 June , 2020         Fdiindia

FDI in Food Processing Sector Surges 44 pc to USD 904.7 mn in 2019-20

According to data released by the government, foreign direct investment or FDI in the food processing sector surged 44 per cent to USD 904.7 million in the financial year 2019-20. The sector had been a recipient of USD 628.24 million in the fiscal year 2018-19 and USD 904.90 million in 2017-18.

"With 100 per cent FDI allowed by GOI (Government of India) & ease of doing business, India's food processing sector attracted global investors as it received FDI inflows worth USD 904.70 mn in the 2019-20 (up by 44 per cent over 2018-19)," the food processing ministry said in a tweet.

As per existing FDI norms, 100 per cent foreign direct investment is permitted in the food processing sector under the automatic route of approval. The Central government, in 2016, had permitted 100 per cent FDI through the approval route for retail trading, including through e-commerce, in respect of food products manufactured and produced in India.

Under the automatic route, a foreign investor can invest in the country without getting a prior approval from the government or the Reserve Bank of India (RBI).

Due to the deadly COVID-19 that first originated in the Chinese city if Wuhan last December, business activities have come to a standstill. The outbreak has had devastating effects on both human life and the global economy.