5 December , 2021 Fdiindia
Food Processing Sector Sees A Decline In FDI
In a written reply to the Rajya Sabha, Minister of State for Food Processing Industries Prahlad Singh Patel, briefed that the foreign direct investment (FDI) in the food processing sector stood at Rs. 2,934.12 crore for FY 2020-21, witnessing a decline of 54% compared to the previous financial year.
Last year, the sector saw FDI of Rs. 6,414.67 crore. Up to 100?I is permitted for the industry under the automatic route.
“The share of FDI in the food processing sector is only 1.5 percent of the total FDI inflows and the sector needs more investments both domestic as well foreign direct investment,” he said.
He further added that the ministry is implementing the Pradhan Mantri Kisan Sampada Yojana (PMKSY), a central scheme started in 2016-17 for overall growth and development of the food processing sector. One of the main objectives of the scheme is to boost investment in the sector.
Patel also mentioned that the ministry is also implementing the PM Formalization of Micro Food Processing Enterprises Scheme (PM FME), a centrally sponsored scheme initiated to enhance and support 2 lakh micro food processing units through credit linked subsidy in line with the One District One Product (ODOP) strategy.
The food processing industry is one of the largest in the world and links Indian farmers with domestic and international markets. The industry employs approximately 1.93 million people in close to 39,748 registered units.
Under PMKSY, 63 agro-processing clusters, 353 cold chain projects, 41 mega food parks, 292 food processing units, 63 creation of backward and forward linkages projects, and six operation green projects have been approved in the country.
The primary sub-sections that come under the industry are fruits and vegetables, fisheries, poultry and meat processing, dairy industry and food retail.
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