Lok Sabha Question No. 1949 (UNSTARRED), answered on 2017-03-14
Subject: FDI in Food Processing Industries
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: DHARMENDRA YADAV, ANANDRAO  ADSUL, PRITAM GOPINATH MUNDE, Shrirang Appa Barne, SHIVAJI ADHALRAO PATIL, SHRIKANT EKNATH SHINDE, VINAYAK BHAURAO RAUT, PARASURAMAN K., MANOJ RAJORIA

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 1949

ANSWERED ON 14 TH  MARCH, 2017

## FDI IN FOOD PROCESSING INDUSTRIES

1949:   SHRI DHARMENDRA YADAV: SHRI ANANDRAO ADSUL: DR. PRITAM GOPINATH MUNDE: SHRI SHRIRANG APPA BARNE: SHRI ADHALRAO PATIL SHIVAJIRAO: DR. SHRIKANT EKNATH SHINDE: SHRI VINAYAK BHAURAO RAUT: SHRI K. PARASURAMAN: DR. MANOJ RAJORIA:

Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:

- (a) the current status of Foreign Direct Investment (FDI) in food processing industries;
- (b) whether the Government sets any targets to double the foreign direct investment in the sector in the next two years and if so, the steps taken by the Government in this regard;
- (c) whether investors have demanded that the policy related to the sale of home and personal care products manufactured in India be opened with that of food products and if so, the details thereof and steps taken by the Government in this regard;
- (d) whether  food  retailers  such  as  Big  Basket,  Grofers  and  Amazon  had  sent  proposals  to  the Government for FDI in online food retails and if so, the details thereof; and
- (e) the steps taken by the Government in this regard?

## ANSWER

## THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SADHVI NIRANJAN JYOTI)

- (a) & (b)        As per extant Policy, FDI up to 100%, under the automatic route, is allowed in food processing industries. The Government does not fix targets for FDI inflows as FDI is largely a matter of private  business  decisions.  FDI  inflows  depend  on  a  host  of  factors  such  as  availability  of  natural resource, market size, infrastructure, political and general investment climate as well as macro-economic stability and investment decision of foreign investors. Further, 100% FDI is permitted under Government approval  route  for  trading,  including  through  e-commerce,  in  respect  of  food  products  manufactured and/or  produced  in  India.  According  to  the  data  provided  by  the  Department  of  Industrial  Policy  and Promotion  (DIPP),  the  food  processing  sector  in  the  country  has  received  US$  5.76  billion  worth  of Foreign Direct Investment (FDI) equity inflows during the period 2010-11 to 2015-16. In 2016-17(AprDec), the food processing sector in the country has received US$ 663.23 million worth of Foreign Direct Investment (FDI) equity inflows.

(c) to (e) Government has been interacting with investors to identify issues for promoting FDI in the food processing sector. Several issues including sale of home and personal care product have been raised by investors. M/s Amazon Corporate Holdings Private Limited, M/s Grofers India Pvt Ltd. and M/s Supermarket  Grocery  Supplies  Pvt  Ltd.  (Big  Basket)  have  submitted  foreign  investment  proposals  for approval of the Government for undertaking retail trading of food products in India.

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