The government will relax foreign direct investment (FDI) regulations to give a boost to the food processing sector, which has attracted $ 8.7 billion of investment, a senior government official said here.
"We have already received $ 8.7 billion of FDI in food processing industry and we are in the process of removing bottlenecks as we see huge FDI investment potential in the sector. The government will relax FDI regulations to give a boost to the sector," ministry of commerce and industry DIPP joint secretary Rajiv Aggarwal told PTI on the sidelines of World of Food India conference organized by FICCI.
MNCs and investors were facing some hurdles, which has now been removed in terms of modifications, harmonisation. They hope to provide ease of doing business in the sector, he added.
At present, 100 per cent FDI in food processing sector is allowed in setting up of manufacturing unit. There is no permission required for wholesale business in the sector too, he said.
The government is expected to announce a new industrial policy soon. The proposed policy will encompass the use of new technologies such as artificial intelligence and IoT which will open new avenues for investments in India.
"We need technology and investment in supply chain mechanism to boost the industry," Aggarwal said, adding that the industry faces huge wastages from farm to table. "We only process 7 per cent of perishable goods as compared to 65 per cent in US, 23 per cent in China and 78 per cent in Phillipines," he said.
The three-day conference, is being attended by buyers and sellers from 30 countries with 297 exhibitors showcasing the latest technologies and trends in the food and beverage industry and 7,000 scheduled B2B meetings are to be held.