Indian processing industry open to foreign investors
The Indian government is planning a range of measures
to boost foreign investment in the local food processing industry, with the hope
that the influx of funds will help combat local infrastructure deficiencies.
will provide bonuses and tax reductions to foreign players,
potentially allowing 51% foreign direct investment (FDI) in food retailing,
covering dairy, poultry, marine, vegetables and fruits sectors by the end of
2006. Presently, FDI permitted in the food-processing sector is
The government hopes that opening these sectors up to international giants
will improve local infrastructure, packing and cold storage facilities and
transportation. This will ultimately raise the country's share in the global
food processing industry.
A recent report by RNCOS
(Research & Consultancy Outsourcing Services),
'Indian Food Processing (2006 )', says that the Indian government is also
planning agri-zones and mega food parks to promote food processing industry in
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