FDI in food processing sector surges 24% to $905 million in FY18

The foreign direct investment (FDI) in the food processing sector rose 24 per cent in 2017-18 to $904.9 million, according to an official data.

FDI inflow into the sector stood at $727.22 million during 2016-17 financial year.

The sector attracted FDI worth $505.88 million and $515.86 million in 2015-16 and 2014-15 respectively, the data showed.

The government had in July last approved American e-commerce major Amazon's proposed $500 million investment in retailing of food products in India.

At present, 100 per cent FDI in food processing sector is allowed through automatic route. In 2016, the Centre allowed 100 per cent FDI through approval route for retail trading, including through e-commerce, in respect of food products manufactured and produced in India.

Food Processing Minister Harsimrat Kaur Badal had in February this year said FDI in the sector could touch $1 billion in 2017-18.

The sector would attract an investment of $14 billion over the next 2-3 years as committed by the domestic and foreign investors during the world food summit, she had said.

The World Food India 2017, organised by the ministry, attracted participation from 61 countries, 60 Global CEOs and more than 200 global companies.