Lok Sabha Question No. 2377 (UNSTARRED), answered on 2016-08-01
Subject: Licencing Under IDRA Act
Ministry: COMMERCE AND INDUSTRY
Asked by: MAHEISH GIRRI

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

## LOK SABHA

UNSTARRED QUESTION NO. 2377. TO BE ANSWERED ON MONDAY, THE 1 ST  AUGUST, 2016.

## LICENCING UNDER IDRA ACT

## 2377.  SHRI MAHEISH GIRRI:

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

## वाणिज् यवव द्यग ं ्री

- (a) whether certain food items have been exempted from the purview of licensing under  the  Industries  (Development  and  Regulation)  Act,  1951,  if  so,  the details thereof;
- (b) whether there are a few small-scale items and alcoholic beverages have been reserved and not exempted, if so, the details thereof and the reasons therefor;
- (c) whether  automatic  approval  for  foreign  equity  up  to  100%  is  available  for processed food items, if so, the details thereof; and
- (d) the amount of FDI that has come till now in the processed food industry in the country?

## ANSWER

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

- (a): Yes Madam, all food items are exempted from the purview of licensing under the Industries (Development and Regulation) Act, 1951.
- (b): At present no item is exclusively reserved for the manufacture in the small scale sector.  Hence,  food  processing  activities  stands  exempted  from licensing provision under IDR Act, 1951. For alcoholic beverages, manufacturing licence is to be issued by the concerned State Government in view of the Industries (Development and Regulation) Amendment Act, 2016.
- (c): Foreign  Direct  Investment  (FDI)  up  to  100%  is  allowed  in  food  processing industries  under  automatic  route.  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.

(d) Statement  on  FDI  Equity  inflows  (Financial  Year  Wise)  from  April  2000  to May 2016 in Food Processing Industries Sector is as follows:

| Sl.No.   | Year                   |   FDI (In US$ Million) |
|----------|------------------------|------------------------|
| 1.       | 2000-01                |                  45.75 |
| 2.       | 2001-02                |                 219.39 |
| 3.       | 2002-03                |                  36.88 |
| 4.       | 2003-04                |                 109.22 |
| 5.       | 2004-05                |                  43.98 |
| 6.       | 2005-06                |                  41.74 |
| 7.       | 2006-07                |                 102    |
| 8.       | 2007-08                |                  70.17 |
| 9.       | 2008-09                |                 102.71 |
| 10.      | 2009-10                |                 278.89 |
| 11.      | 2010-11                |                 188.67 |
| 12.      | 2011-12                |                 170.21 |
| 13.      | 2012-13                |                 401.46 |
| 14.      | 2013-14                |                3982.89 |
| 15.      | 2014-15                |                 515.86 |
| 16.      | 2015-16                |                 505.88 |
| 17.      | 2016-17 (April to May) |                 121.19 |
| Total    | Total                  |                6936.88 |

****