Investment in Food Industries
The food sector in India has successfully established its presence. Thanks to investments in the food industry in India, it has witnessed exponential growth in the recent years. The liberalized Foreign Investment rules have encouraged an increase in FDI in the food processing industries.
- 100% FDI in the food processing sector in India is allowed under the automatic route.
- 100% FDI is allowed through the government approval route for trading, including through e-commerce in respect of food products manufactured or produced in India.
India has an immense scope for retail expansion and foreign funding can expand markets by reducing transaction and transformation costs of businesses through the adoption of an advanced supply chain. FDI brings with it new technologies, helping in the rapid growth of the sector. More food processing units will be introduced, effectively generating employment.