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FDI flow in food processing sector slumps 54%: Govt

New Delhi, Dec 6: Foreign direct investment in the food processing sector declined by more than 50 per cent during the last financial year over the previous year, the government has informed the Parliament.

The FDI flow into the sunshine industry came down to 54 per cent to Rs 2934.12 crore, Minister of State for Food Processing Industries Prahlad Singh Patel informed the Rajya Sabha.

In a written reply in the Upper House, the Minister said FDI into the sector stood at a high of Rs 6414 crore in 2019-20 but declined to 2934 crore in the following financial year. He, however, did not cite any reason for the fall.

Several sectors in India were hit last year because of the pandemic, though the road to recovery has been fast if one takes the GDP growth rate of over 8 per cent recorded in the last quarter of the ongoing fiscal.

The Minister, though, said that the sector needs more investment both from domestic and foreign investors as its share in the total FDI inflow into the country is only 1.5 per cent.

The Minister said his ministry is also implementing a centrally sponsored scheme-PM Formalisation of Micro Food Processing Enterprises Scheme (PM FME) to upgrade and support 2 lakh micro food processing units through credit linked subsidy based on One District One Product (ODOP) approach.