In a recent development, the Union government has initiated the process for framing the policy with respect to foreign direct investment (FDI) in food retail business. The department of industrial policy promotion (DIPP) has been entrusted to chalk out plan for the investment through FIPB route.
According to Union minister for food processing industries Harsimrat Kaur Badal, the ministry is getting a lot of queries regarding FDI, ever since the policy initiative was announced by the finance minister in the Budget.
Senior officials in the government also say that the proposals for investment will be scrutinised on case to case basis and by next month a policy for that will be in place. On this subject, a cabinet note will be prepared which shall be circulated for noting and will be placed before the Cabinet for approval.
Further, Arun Jaitley, finance minster, chaired a meeting recently wherein top officials from the ministries of food processing industries and commerce and DIPP took part, to deliberate upon the modalities for allowing 100 per cent FDI in marketing and processing of food products made in India.
It may be recalled that in the Budget, Union government had announced 100 per cent foreign direct investment in retail marketing of food products manufactured in India. The food processing minister claimed that it would help farmers in increasing their income while giving much-needed fillip to the food processing sector and development of infrastructure.
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