Speaking at World Food India 2017 in New Delhi, India’s Finance Minister Arun Jaitley said, “Food processing is going to be one of the principal industries of India in the future. The farm to kitchen chain is going to change in India, like elsewhere, with increased agricultural production, better storage facilities, more food processing and changing consumer food preference.” Jaitley holds one of the most powerful posts in Prime Minister Modi’s cabinet and is considered part of his trusted inner circle.
The three-day food fair ended with 50 memoranda of understanding signed and an investment commitment of $19 billion of which $11.25 billion will be from the private sector. For example, PepsiCo signed an MoU worth $2 billion to set up a food and beverage plant, Coca Cola will invest $1.7 billion in juice bottling and fruit processing plants and equipment, while Indian companies ITC and Patanjali committed an investment of $1.54 billion each in this sector. Amazon signed an MoU in the food retail sector.
The Indian food market was worth $193 billion in 2016 and is expected to cross $540 billion in 2020, reports India Retailing. The sector has been growing at the rate of 12 percent annually.
Food Processing Minister Harsimrat Kaur Badal said, “100 percent foreign direct investment is allowed in this sector through the “automatic” route and we have seen inflows increase 40 percent over the last year.” The industry enjoys many fiscal incentives, including preferential credit under priority sector lending, she added.
