New Delhi: Foreign direct investment (FDI) in India’s food processing sector declined 30% in the last fiscal to Rs 5,037.06 crore. The FDI in the food processing sector stood at Rs 7,194.13 crore in 2022-23. According to the data presented by the Food Processing Industries Ministry in Lok Sabha, the FDI in the food processing sector stood at Rs 5,290.27 crore in 2021-22 and Rs 2934.12 crore in 2020-21.
FDI was Rs 6,414.67 crore in 2019-20; Rs 4430.44 crore in 2018-19; Rs 5,835.62 crore in 2017-18; Rs 4,865.85 crore in 2016-17; and Rs 3,312 crore in 2015-16 in the food processing sector
Earlier the ministry has allowed 100% FDI permitted through automatic routes for the food processing sector subject to sectoral regulations. It has allowed 100% FDI, under the government-approval route, for trading including through e-commerce, in respect of food products manufactured or produced in India. The government has exempted all processed food items from the purview of licensing under the Industries (Development and Regulation) Act, 1951.
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There is a lower GST for raw and processed products. More than 71.7% of food products under various chapter heads/sub-heads are covered in lower tax slabs of 0% and 5%. The export of processed foods declined 17% to $10,881.81 million in 2023-24 from $13,078.3 million in the preceding fiscal.
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