The food sector in India has successfully established its presence. This is a high-profit sector that has witnessed exponential growth in the recent years. The liberalized Foreign Investment rules are improving the business of the food processing sector of the country.
- 100% FDI is permitted under the automatic route in food processing industries.
- 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 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.