FDI in food processing: FM holds meeting with officials

Finance Minister Arun Jaitley held a meeting with top officials of food processing, commerce and industry ministries to work out the modalities for allowing 100 percent FDI in marketing and processing of foods products.

After the finalisation of the details on the subject, the Department of Industrial Policy and Promotion (DIPP) will prepare a Cabinet note for approval, an official said.

DIPP is expected to hold a stakeholder meeting on the issue on Monday.

Besides Food Processing Minister Harsimrat Kaur Badal, the other officials, including Commerce Secretary Rita Teaotia and DIPP Secretary Ramesh Abhishek, attended the meet.

With a view to benefiting farmers and reducing wastage of fruits and vegetables, the government in the Budget proposed allowing 100 percent foreign direct investment in marketing and processing of food products.

In his Budget speech, Jaitley had said the move would benefit farmers, give an impetus to the food processing industry and create vast employment opportunities.

During April-December 2015, FDI into the country grew by 40 percent to USD 29.44 billion.