Lok Sabha Question No. 2535 (UNSTARRED), answered on 2019-07-09
Subject: India’s Share in FPI
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Gautam Gambhir

## GOVERNMENT OF INDIA

## MINISTRY OF FOOD PROCESSING INDUSTRIES LOK SABHA UNSTARRED QUESTION NO. 2535 ANSWERED ON 09 TH  JULY, 2019

## INDIA'S SHARE IN FPI

## 2535. SHRI GAUTAM GAMBHIR:

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

- (a) the total share of India's Food Processing Industries (FPIs) in the world;
- (b) whether the Government proposes to increase India's share in FPIs in the world, especially amongst neighbouring countries;
- (c) if so, the details thereof;
- (d) whether India has sought assistance from developed countries for development of the food processing sector; and
- (e) if so, the details thereof?

## ANSWER

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

(a): India occupies mostly the first three positions in the production of most of the agricultural and marine produce/products in the world, the prominent of which are: first in buffalo milk (70.27%), ghee of buffalo milk (79.41%), ghee & butter oil of cow milk (57.18%), buffalo meat (42.17%) and second in rice/paddy (21.43%), wheat (12.48%), potato (11.62%), onion dry (20.84%), tomato (10.39%), tea (21.03%) and fish (7%). The food processing industries in India is, however, a sunrise sector with the level of processing at 6.76% and accounts for only 2.31% of the global food export.

(b) & (c): To increase the share of food processing in the overall manufacturing sector of the Indian economy by increasing the level of processing and, inter alia, to give boost to export of the processed food products and for overall growth and development of food processing industries by ensuring robust modern infrastructure along the entire value/supply chain of food processing, the Government is implementing various Central Sector Schemes under PRADHAN SAMPADA MANTRI KISAN YOJANA (PMKSY). Government has also taken a number of policy initiatives like permitting 100% Foreign Direct Investment (FDI) through automatic route in  manufacturing  of  food  products,  creation  of  a  special  fund  of  Rs.2000  crores  in  National  Bank  for Agriculture and Rural Development (NABARD) to provide affordable credit to food processing industries, classification of food & agro-based processing units and cold chain as agriculture activity for Priority Sector Lending (PSL), lower Goods & Services Tax (GST) rates for majority of food products, 100% exemption of income tax on profit for new food processing units, 100 percent income tax exemption from profit derived by FPOs having annual turnover of Rs.100 crore for activities such as post-harvest value addition to agriculture, allowing 100% expenditure deduction for income tax calculation on investment in cold chain infrastructure, concessional  import  duty  for  plant  and  machinery  under  project  imports  benefit  scheme,  import  duty exemption on import of raw material under advance authorization scheme  etc.

(d) & (e): The Government has not asked any assistance from the developed countries. The Ministry of Food Processing Industries (MoFPI) organizing and taking part in various promotional activities at national and international  level  to  showcase  India's  potential  and  opportunities  in  the  food  processing  sector  to  attract foreign investment in food processing sector from all across the globe.

The Ministry organized a mega international event, World Food India 2017 during 3- 5 November, 2017 to this end.

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