Foreign Direct Investment (FDI) in the food processing sector fell 54% to Rs 2,934.12 in 2020-21
FDI inflows into the food processing sector at $393.41 million in the period 2020-21
Foreign direct investment (FDI) in the food processing sector fell 54% to Rs 2,934.12 crore in 2020-21 year-on-year, the government said on Friday. In a written reply to Rajya Sabha, Food Processing Industry Minister Prahlad Singh Patel announced that FDI in the food processing sector stood at Rs 4,430.44 for the period 2018-19, 6,414.67 Rs for the period 2019-20 and Rs 2,934.12 for the financial year period 2020-21.
The minister said FDI inflows into the food processing sector stood at $393.41 million in the period 2020-21 compared with $904.70 million in the previous year. In the 2018-19 fiscal year, foreign direct investment (FDI) capital was $628.24 million, while FDI was $904.9 million in 2017-18 and $727.22 million in the period. 2016-17.
Patel announced that 100% of FDI is allowed under the automatic route for this sector. “The share of FDI in the food processing sector accounts for only 1.5% of total FDI inflows, and the sector needs more investment both domestically as well as foreign direct investment,” said Patel.
The ministry is implementing a central sector plan Pradhan Mantri Kisan Sampada Yojana (PMKSY) from 2016-17 for the overall growth and development of the food processing sector, including promoting investment, Mr. added.
Patel said the ministry is also working on a centrally funded plan – PM Formalize Micro Food Processing Enterprises (PM FME) to upgrade and support 20,000 micro food processing units through a credit-linked subsidy based on the One District, One Product (ODOP) approach.
