FDI in food processing sector down 32% in 2010-11

The foreign direct investment (FDI) in the food processing sector declined 32% to $188.67 million in 2010-11, Parliament was informed today.

The sector had attracted $278.89 million FDI in 2009-10, Minister of State for Food Processing Industries Charan Das Mahant said in a written reply to the Lok Sabha.

On whether the government has conducted any study on the impact of increased FDI in food processing, Mahant replied in negative.

"However, FDI not only complements and supplements domestic investment but also brings state-of-the-art technology and best managerial practices, thereby providing better access to foreign technology to the domestic industry," he added.

Replying to a separate query in the house, the minister said that the government has sponsored a study done by Rabo bank for preparing a vision document suggesting the action plan for the food processing sector called 'Vision 2015'.

"The adopted Vision 2015 provides for enhancing value addition from 20% to 35% and increasing India's share in global food trade from 1.5% to 3% by year 2015," Mahant said.

To achieve the targets envisaged in the document, an investment of Rs 1,00,000 crore was estimated by 2015, out of which Rs 10,000 crore was to come from the government, he added.