Indian Government is initiating various steps to boost Foreign Direct Investment (FDI) and one of the significant measures was declaring the Food Processing Sector under 100% FDI through automatic route. The FDI inflow into the food processing sector in 2011-12 up to February 2012 has been $141.62 (Rs 682.30).
FDI complements and supplements the domestic investments. Apart from capital, it brings in state-of-art technology and best managerial practices, thereby providing better access to the domestic industry to foreign technology and integration into the global market. The existing guidelines allowed FDI under the automatic route, inter alia, Food Processing Industries.
Foreign Direct Investment also brings new products, new technology and improved quality in the Food Processing Sector resulting in reduction in wastage of agri products, safe and hygienic foods, higher employment and also enhancing export potential of processed foods.