Lok Sabha Question No. 1444 (UNSTARRED), answered on 2020-02-11
Subject: FDI Inflow
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Balashowry Vallabbhaneni

## GOVERNMENTOF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 1444

ANSWERED ON 11 TH  FEBRUARY, 2020

## FDI INFLOW

## 1444.  SHRI BALASHOWRY VALLABHANENI:

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

- ( a ) whether it is true that April-June, 2019 quarter received the highest FDI inflow into food processing sector;
- ( b ) if so, the manner in which the Government looks at this positive aspect and proposes to push in measures and incentives for more and more FDI into the sector;
- ( c ) the status of FDI inflow in the third quarter of 2019-20;
- ( d ) the details of domestic investment in food processing during the above periods;
- ( e ) the constraints that the Government is facing to attract FDI and the manner in which the Government is planning to resolve the same with cooperation of the Finance and other Ministries; and
- ( f ) the FDI in various States during the last three years and the current year, State-wise?

## ANSWER

## THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SHRI RAMESWAR TELI)

(a) to (e): Government has already permitted 100% Foreign Direct Investment (FDI) through automatic route in manufacturing of food products subject to sectoral rules and regulations and 100%  FDI  is  allowed  through  Government  route  in  retail  food  trade,  including  through  ecommerce, in respect of the food products produced/manufactured in India. Of the available information  on  FDI  equity  inflow  in  the  food  processing  sector  for  the  first  two  quarters  of current year 2019-20 so far, in April-June 2019 quarter the FDI equity inflow was US$ 329.04 million which is higher than the quarter ending September 2019 at US$134.40 million. As per the  latest  available  Annual  Survey  of  Industries  information,  the  invested  capital  in  the registered food processing sector during the last three years is in the order of Rs.3,86,350 crore in 2015-16, Rs.4,17,695 crore in 2016-17 and Rs.4,48,938 crore in 2017-18 (provisional).

(f): A statement on FDI equity inflow in food processing sector to group of States/UTs as maintained in the regional offices of RBI during the last three years and the current year is at Annexure .

*****

ANNEXURE  REFERRED  TO  IN  REPLY  TO  PARTS  (f)  OF  LOK  SABHA UNSTARRED  QUESTION  NO.  1444  FOR  ANSWER  ON  11 TH   FEBRUARY,  2020 REGARDING 'FDI INFLOW '.

FDI  Equity  Inflows  during  2016-17  to  2019-20  (April  2019  to  June  2019)  in  Food Processing Sector

(Amount in US$ Million)

| S.No   | Regional Offices of RBI   | States Covered                                                           |   2016- 17 |   2017- 18 |   2018- 19 |   2019-20 (Apr-Jun) |
|--------|---------------------------|--------------------------------------------------------------------------|------------|------------|------------|---------------------|
| 1      | HYDERABAD                 | ANDHRA PRADESH                                                           |      30.99 |      13.46 |      20.23 |               15.33 |
| 2      | GUWAHATI                  | ASSAM, ARUNACHAL PRADESH, MANIPUR, MEGHALAYA, MIZORAM, NAGALAND, TRIPURA |       0    |       0.09 |       0.01 |                0    |
| 3      | PATNA                     | BIHAR, JHARKHAND                                                         |       1.42 |       7.62 |       0    |                0    |
| 4      | AHMEDABAD                 | GUJARAT                                                                  |      12.4  |      23.09 |      20.41 |                0.79 |
| 5      | BANGALORE                 | KARNATAKA                                                                |      27.47 |      56.12 |      92.94 |                1.2  |
| 6      | KOCHI                     | KERALA, LAKSHADWEEP                                                      |       0.64 |       9.09 |       2.95 |                0    |
| 7      | BHOPAL                    | MADHYA PRADESH, CHATTISGARH                                              |       0    |       6.29 |       0.05 |                0    |
| 8      | MUMBAI                    | MAHARASHTRA, DADRA &NAGAR HAVELI, DAMAN & DIU                            |     223.63 |     374.14 |     288.26 |               25.08 |
| 9      | BHUBANESHWAR              | ORISSA                                                                   |       0    |       0    |       9.57 |                0    |
| 10     | JAIPUR                    | RAJASTHAN                                                                |       0.29 |      36.62 |       0.32 |                0.87 |
| 11     | CHENNAI                   | TAMIL NADU, PONDICHERRY                                                  |      93.93 |      93.31 |      11.94 |              244.95 |
| 12     | KANPUR                    | UTTAR PRADESH, UTTRANCHAL                                                |       0.11 |       2.69 |       0.7  |                0    |
| 13     | KOLKATA                   | WEST BENGAL, SIKKIM, ANDAMAN &NICOBAR ISLANDS                            |       0    |      15.82 |       6.22 |                1.17 |
| 14     | CHANDIGARH                | CHANDIGARH, PUNJAB, HARYANA , HIMACHAL PRADESH                           |       0.73 |       0.06 |      10.69 |                0.03 |
| 15     | NEW DELHI                 | DELHI, PART OF UP AND HARYANA                                            |     296.68 |      84.55 |     101.45 |               22.99 |
| 16     | PANAJI                    | GOA                                                                      |       0    |       0    |       0    |                0.1  |
| 17     | REGION NOT INDICATED      | REGION NOT INDICATED                                                     |      38.92 |     181.94 |      62.5  |               16.53 |
|        |                           | Grand Total                                                              |     727.22 |     904.9  |     628.24 |              329.04 |