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        News and Press Release

        FDI in Food Processing Industries

        July 24, 2017

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        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.

        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

        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.

        This information was given by the Commerce and Industry Minister  Smt. Nirmala Sitharaman in a written reply in Lok Sabha today

        100% FDI in food processing allowed under automatic route; retail trading FDI allowed for domestically manufactured food products. The policy permits 100% FDI in food processing industries under the automatic route, and allows 100% FDI under the government route for retail trading, including e commerce, limited to food products that are manufactured and/or produced in India. The government maintains remittance wise FDI data publicly and reported financial year wise inflows for the food products sector and food processing industries for April 2014-May 2017.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                100% FDI in food processing allowed under automatic route; retail trading FDI allowed for domestically manufactured food products.

                                The policy permits 100% FDI in food processing industries under the automatic route, and allows 100% FDI under the government route for retail trading, including e commerce, limited to food products that are manufactured and/or produced in India. The government maintains remittance wise FDI data publicly and reported financial year wise inflows for the food products sector and food processing industries for April 2014-May 2017.





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                                ActsIncome Tax
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