Indian processing industry open to foreign investors
The Indian government is planning a range of measures to boost foreign investment in the local food processing industry, with the hope that the influx of funds will help combat local infrastructure deficiencies.
The government will provide bonuses and tax reductions to foreign players, potentially allowing 51% foreign direct investment (FDI) in food retailing, covering dairy, poultry, marine, vegetables and fruits sectors by the end of 2006. Presently, FDI permitted in the food-processing sector is 100%.
The government hopes that opening these sectors up to international giants will improve local infrastructure, packing and cold storage facilities and transportation. This will ultimately raise the country’s share in the global food processing industry.
A recent report by RNCOS (Research & Consultancy Outsourcing Services), ‘Indian Food Processing (2006 )’, says that the Indian government is also planning agri-zones and mega food parks to promote food processing industry in India.
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