In a bold policy move, the Indian government finally appears to have opened the doors of 100% foreign direct investment (FDI) to multi-brand retail, though only in processed foods manufactured locally in the country .
The move could pave the way for global retailers like Walmart, Carrefour and Tesco, which can now set up retail outlets exclusively for packaged food products made in India.The objective is to make the food processing industry more efficient. It is also expected to benefit farmers as the requirement involves 100% sourcing of raw materials from India.
Union minister of food processing Harsimrat Kaur Badal had recently written to the PM in favour of 100% FDI in multi-brand retail in food products. Krish Iyer, president & CEO, Walmart India, said, “The decision by the government is very progressive and will help reduce wastage, enhance farm diversification and encourage industry to produce locally within the country . This far-reaching reform will benefit farmers, give impetus to the food processing industry and create vast employment.“
Piruz Khambatta, chairman, Rasna, said the move “would bring in more foreign capital in farm to fork rural infrastructure which will greatly help bring down the prices of agri produce“. The move will also indirectly benefit companies like Britannia, Hindustan Unilever, Nestle and Parle.
The move could pave the way for global retailers like Walmart, Carrefour and Tesco, which can now set up retail outlets exclusively for packaged food products made in India.The objective is to make the food processing industry more efficient. It is also expected to benefit farmers as the requirement involves 100% sourcing of raw materials from India.
Union minister of food processing Harsimrat Kaur Badal had recently written to the PM in favour of 100% FDI in multi-brand retail in food products. Krish Iyer, president & CEO, Walmart India, said, “The decision by the government is very progressive and will help reduce wastage, enhance farm diversification and encourage industry to produce locally within the country . This far-reaching reform will benefit farmers, give impetus to the food processing industry and create vast employment.“
Piruz Khambatta, chairman, Rasna, said the move “would bring in more foreign capital in farm to fork rural infrastructure which will greatly help bring down the prices of agri produce“. The move will also indirectly benefit companies like Britannia, Hindustan Unilever, Nestle and Parle.
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