Decline in FDI in India's Food Processing Sector in 2023-24
Foreign direct investment (FDI) in India’s food processing sector experienced a significant decline of 30% in the fiscal year 2023-24, totaling Rs 5,037.06 crore, down from Rs 7,194.13 crore in 2022-23. This decline follows a series of fluctuating FDI levels over recent years, with previous figures including Rs 5,290.27 crore in 2021-22, Rs 2,934.12 crore in 2020-21, and higher amounts in preceding years.
To enhance foreign investment in the food processing sector, the Indian government has implemented several measures:
100% FDI: Permitted through the automatic route subject to sectoral regulations.
Government-Approval Route: Allows 100% FDI for trading (including e-commerce) of food products manufactured or produced in India.
Licensing Exemptions: Processed food items are exempt from licensing under the Industries (Development and Regulation) Act, 1951.
GST Reductions: Lower GST rates for raw and processed food products, with over 71.7% of food products covered under lower tax slabs of 0% and 5%.
Export Decline: The export of processed foods dropped by 17% to USD 10,881.81 million in 2023-24 from USD 13,078.3 million in the previous fiscal.
The Ministry is implementing several schemes to boost the sector:
India's higher education system is vast, with numerous universities across its states. Among these, some…
Delhi's metro system is renowned for its efficiency and vast network, but the Hauz Khas…
Honorable Prime Minister of India Shri. Narendra Modi launched the scheme of “Subhadra”, flagship initiative…
Jacobus Henricus van 't Hoff Jr. (1852–1911) was a Dutch physical chemist renowned for his…
Uttar Pradesh Chief Minister Yogi Adityanath and Tripura Chief Minister Dr. Manik Saha jointly inaugurated…
The role of the Prime Minister in the United Kingdom (UK) has evolved over the…