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:
Education has a long and rich history. Some universities in the world were built hundreds…
The Archaeological Survey of India (ASI) has started the important conservation operation at the Konark…
River islands are special landforms that form inside rivers when soil, sand, and small rocks…
UK Parliament has approved the Tobacco and Vapes Bill which will permanently ban the individuals…
The Reserve Bank of India (RBI) has decided to keep the repo rate unchanged at…
In today's world, most countries have a president as their leader. But not all nations…