Food Processing units set up by foreign investors

Lok Sabha

Foreign Direct Investment (FDI) complements and supplements domestic investment. FDI brings in, apart from capital, 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 extant policy permits FDI under the automatic route in most sectors/activities, including Food Processing Industries. No specific criteria have been laid down for FDI into sectors under the automatic route. However, proposals requiring prior Government approval are considered by the Foreign Investment Promotion Board (FIPB), an inter-Ministerial recommendatory body, which takes into account the policy and sectoral guidelines for FDI. The FIPB also examines whether the proposal would jeopardize an existing joint venture or technology transfer/trade mark agreement if any, in the same field in India. There is no definitive indication about the adverse impact of FDI on the small food processing units and no data is available centrally regarding effect of FDI on the domestic industry.

This information was given by Shri Subodh Kant Sahai, Minister of Food Processing Industries, in the Lok Sabha today in a written reply.

VLK/ska