In order to attract more foreign direct investment (FDI), ministry of commerce and industry DIPP joint secretary Rajiv Aggarwal has said that the government will relax FDI regulations to give a boost to the food processing sector. He also underlined that the government is taking efforts to remove bottlenecks existing in the sector.
Aggarwal further mentioned that MNCs and investors were facing some hurdles, which has now been removed in terms of modifications, harmonization, adding that this move may provide ease of doing business in the sector. Besides, he expressed need of technology and investment in supply chain mechanism to boost the industry, highlighting huge wastages being faced by the industry from farm to table.
Rajiv Aggarwal also pointed out the facts and performance of the industry, saying that the country has already received $8.7 billion of FDI in food processing industry and presently, 100 percent 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.