Lok Sabha Question No. 1266 (UNSTARRED), answered on 2017-07-24
Subject: FDI in Food Processing Industries
Ministry: COMMERCE AND INDUSTRY
Asked by: RAM KUMAR SHARMA KUSHWAHA, PARASURAMAN K., ANANT KUMAR DATTATREYA HEGDE

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

UNSTARRED QUESTION NO. 1266. TO BE ANSWERED ON MONDAY, THE  24 TH  JULY, 2017.

## FDI IN FOOD PROCESSING INDUSTRIES

## 1266.   SHRI RAM KUMAR SHARMA:

SHRI K. PARASURAMAN:

SHRI ANANTKUMAR HEGDE:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज् यवव द्यग ं ्री

- (a) whether the Government proposes to allow 100 per cent Foreign Direct Investment (FDI) in food processing industries and food retail markets in the country;
- (b) if so, the details thereof including the total FDI made therein during each of the last three years, company-wise;
- (c) whether this decision is likely to benefit many foreign companies which are operating in retail market of the country at present; and
- (d) if so, the details thereof, company-wise?

## ANSWER

## वाणिज् यवव द्यग ााज् यं ्रीस् वतं ््रभााा(स्रींतंरीिरंमलााीरीतंाांि( THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF COMMERCE & INDUSTRY (SHRIMATI NIRMALA SITHARAMAN)

- (a): As  per  extant  Policy,  FDI  up  to  100%,  under  the  automatic  route,  is  allowed  in  food processing  industries.  Further,  100%  FDI  under  Government  route  for  retail  trading, including  through  e-commerce,  is  permitted  in  respect  of  food  products  manufactured and/or produced in India.
- (b): Data  on  foreign  investment  in  India  is  maintained  remittance  wise,  which  is  very voluminous and is available in public domain at the website of Department of Industrial Policy & Promotion at www.dipp.nic.in under the heading `Publication' at 'SIA Newsletter'. However,  the statement on financial year wise FDI equity inflows from April 2014 to May 2017 in food products sector and food processing industries, as maintained is as under

## Food Products

| Sl No   | Year            | FDIin US$ million   |
|---------|-----------------|---------------------|
| 1       | 2014-15 Apr-Mar | 342.50              |
| 2       | 2015-16         | 434.92              |
| 3       | 2016-17         | 562.40              |
| 4       | 2017-18 Apr-May | 182.40              |
|         | Grand Total     | 1,522.23            |

## Food Processing Industries

| Sl No   | Year (Apr-March)   | FDI in US$ million   |
|---------|--------------------|----------------------|
| 1       | 2014-15            | 515.86               |
| 2       | 2015-16            | 505.88               |
| 3       | 2016-17            | 727.22               |
| 4       | 2017-18 Apr-May    | 187.90               |
|         | Grand Total        | 1,936.86             |

- (c) &( d): The Government reviews FDI policy on an ongoing basis with a view to liberalise and simplify the FDI policy so as to provide ease of doing business in the country leading  to  larger  FDI  inflows.  However,  no  such  estimation/  assessment  are possible, as FDI is largely a matter of private business decisions.

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